South Korean battery and electronics materials manufacturer Samsung SDI and South Korean state-utility Korea East-West Power (EWP) have signed a memorandum of understanding (MOU) to develop and invest in global energy storage systems (ESS) and renewable energy projects.
The signing ceremony was held on 6 February at StarPlus Energy (SPE), a joint venture between Samsung SDI and Stellantis, located in Kokomo, Indiana, US.
Under the agreement, the two companies will collaborate on developing and investing in domestic and international energy projects, including ESS. They will also work together on new business models, such as renewable energy projects and grid stabilisation initiatives.
The two companies are also planning to implement a management service provider (MSP) project at Samsung SDI’s lithium iron phosphate (LFP) plant in Ulsan, Korea.
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Samsung SDI is building a plant to develop LFP batteries, specifically for ESS applications, at the Ulsan plant.
The companies highlighted the importance of the agreement, uniting a leading Korean battery maker with a public power generation firm “to deliver tangible business results in the global market amid rapidly growing worldwide demand for ESS and renewable energy.”
Last year, a consultant mentioned to Energy-Storage.news that changing trends in the US BESS industry could uncouple from its supply dependency on Chinese batteries in the near future.
This was partially influenced by announcements by South Korean battery manufacturers, including Samsung SDI, that local manufacturing would be increased and some electric vehicle (EV) battery manufacturing lines would be repurposed for BESS cells. The company is targeting 30GWh of annual production capacity in the US and launching two BESS solutions for the growing domestic content market.
Recently, in a conversation with ESN Premium, Justin Johnson, COO of renewable energy developer-operator Arevon Energy, said, “The combination of the Inflation Reduction Act (IRA) and then all these tariffs and foreign entity of concern (FEOC) restrictions have just been another impetus to continue to bring more domestic supply online. The slower uptake of EVs is freeing up battery cell capacity for BESS to use. They’re now retooling those production lines and creating cells specifically for the energy storage space.”
Recently, LG Energy Solution (LG ES), another South Korean battery producer, acquired Stellantis’s share in its joint large-scale battery manufacturing plant in Ontario, Canada. LG ES has already begun delivering LFP cells to BESS customers from its Holland, Michigan, plant, where it is ramping up 17GWh of annual production capacity, mostly from retooled EV battery cell production lines, and the company plans to continue expansion.
LG ES will now hold an additional 49% stake in NextStar Energy, which operates Canada’s first large-scale lithium-ion (Li-ion) battery plant. The announcement confirmed that the automaker remains a dedicated customer and will continue sourcing battery products from NextStar Energy.
LG ES also announced its plan to secure 90GWh of battery orders in the US energy storage sector this year. During its Q4 2025 results release, LG ES leadership stated that the company aims to increase ESS cell production to over 60GWh by the end of 2026, with a particular focus on the US market.
The Energy Storage Summit USA will be held from 24-25 March 2026, in Dallas, TX. It features keynote speeches and panel discussions on topics like FEOC challenges, power demand forecasting, and managing the BESS supply chain. ESN Premium subscribers can get an exclusive discount. For complete information, visit the Energy Storage Summit USA website.
