Samsung SDI signs 1GWh US battery contract

Samsung SDI has signed a further 1GWh energy storage supply agreement with US developer Alpha Omega Power, increasing the total capacity covered by contracts between the companies to 1.5GWh.

The new agreement was concluded through Samsung SDI America, the manufacturer’s Michigan-based subsidiary. It follows an initial contract signed in late 2025 and covers the supply of Samsung Battery Box (SBB) 1.7 integrated battery storage systems for utility-scale electricity projects in the United States.

Alpha Omega Power intends to deploy the equipment in developments serving the Western Electricity Coordinating Council (WECC) and Electric Reliability Council of Texas (ERCOT) electricity markets. Those projects are expected to begin construction during 2027, while Samsung SDI plans to deliver the contracted battery systems before the end of 2026.

The SBB 1.7 uses high-nickel nickel cobalt aluminium (NCA) prismatic battery cells. Samsung SDI has confirmed that all cells and modules for the latest agreement will be manufactured at the StarPlus Energy facility in Kokomo, Indiana, providing a domestic production source for the principal electrochemical components.

The agreement does not establish that the battery installations are already under construction or operating. It also does not specify the individual project locations, total discharge power, connection voltages or commissioning dates. Those details will depend on the subsequent development and electrical design of the receiving facilities.

The 1GWh order describes energy storage capacity, rather than the amount of power the equipment can deliver at one time. Battery systems are characterised by both their stored energy, expressed in megawatt-hours, and their discharge or charging power, expressed in megawatts.

A facility with 1GWh of usable stored energy could theoretically deliver 250MW for four hours or 500MW for two hours, before accounting for conversion losses and operating limits. These calculations illustrate the distinction between energy and power; neither represents a confirmed configuration for Alpha Omega Power’s installations.

The appropriate relationship between energy capacity and power rating depends on the proposed duty of the battery. Equipment intended to shift electricity across several hours requires sufficient stored energy to sustain discharge, while applications involving shorter responses may place greater emphasis on available power and control performance.

Utility-scale batteries also need to accommodate the conditions imposed by their grid connections. The available import and export capacity, power conversion equipment and permitted operating arrangements influence the services each installation can provide, alongside its commercial participation in electricity markets.

Samsung SDI’s SBB 1.7 is supplied as an integrated system within a 20-foot container format. The manufacturer states that it provides 17% greater energy density than its predecessor, the SBB 1.5, while retaining the same overall container footprint.

Increasing the amount of stored energy within a standardised enclosure can influence the number of containers required for a project and the layout of the battery installation. Equipment spacing, foundations, cable routes, access arrangements and fire safety requirements still need to be assessed against the conditions at each site.

The manufacturer’s higher energy-density figure does not establish a 17% increase in maximum discharge power. Electrical output depends on the design of the battery modules, their permitted current, the available power conversion equipment and the operating limits applied to the complete system.

NCA cells are a type of lithium-ion battery in which nickel, cobalt and aluminium form part of the cathode chemistry. Electrical energy is stored through reversible electrochemical reactions involving lithium ions moving between the electrodes during charging and discharge.

Because the battery modules operate using direct current, grid-connected installations require equipment to exchange electricity with an alternating current network. Power conversion systems control charging and discharging, while transformers, switchgear and protection devices provide the necessary electrical connection and fault isolation.

The design of that interface determines how quickly the installation can respond to operating instructions and how much electrical power it can transfer. Plant controllers coordinate the converters while maintaining the combined output within the agreed connection limits and the operating envelope of the battery equipment.

Battery management systems monitor cell conditions, including voltage, temperature and state of charge. These measurements are used to prevent operation outside the specified limits and to control charging or discharge where equipment conditions would otherwise create excessive electrical or thermal stress.

Samsung SDI has incorporated monitoring and diagnostic functions into the SBB 1.7, including algorithms intended to identify abnormal operating conditions and predict changes in battery condition. The manufacturer describes these functions as AI-based, although the performance achieved by the equipment will depend on the measurements available and the operating conditions encountered.

Battery condition changes throughout the operating life of an installation. Repeated charging and discharge, temperature exposure and periods spent at different states of charge can affect usable energy capacity and internal resistance, making performance monitoring relevant to maintenance planning and the management of available output.

Samsung SDI describes the SBB 1.7 as designed for 25 years of continuous use. That is a manufacturer-stated design objective, rather than verified operating experience extending over 25 years or confirmation that the supply contract includes a warranty of that duration.

The product also incorporates Enhanced Direct Injection technology, which is intended to deliver fire-extinguishing agents directly into individual battery modules. Samsung SDI presents the feature as part of the system’s safety architecture, alongside monitoring and other equipment protections.

Module-level fire protection does not remove the requirement to design the wider installation for electrical and thermal hazards. Site safety arrangements must consider the positioning of containers, fire detection, access for emergency services, electrical isolation and the handling of abnormal operating events.

The manufacturer reports that the SBB 1.7 has obtained relevant certifications and meets applicable provisions of standards including UL 9540 and NFPA 855. UL 9540 addresses energy storage systems and equipment, while NFPA 855 concerns stationary energy storage installations. Project-specific compliance and permitting remain necessary when the product is installed at an individual site.

Certification of an equipment package therefore needs to be distinguished from approval of a completed utility-scale facility. The installation will still require electrical design, suitable protection and control systems, and testing against the requirements of the local authorities and network operators.

The manufacturing arrangements form another part of the agreement. StarPlus Energy is Samsung SDI’s US battery manufacturing venture with Stellantis, based in Indiana. Samsung SDI specifically identifies the facility as the production source for the cells and modules; the announcement does not establish that every other component in the completed storage installation will be manufactured there.

Producing those components domestically provides a US manufacturing route for Alpha Omega Power’s planned projects. Their subsequent installation will require coordination between equipment deliveries, civil construction, electrical balance of plant work and the availability of the relevant grid connections.

The receiving projects are expected to serve markets within the WECC and ERCOT regions, whose network and commercial arrangements differ. Operating requirements, grid connection conditions and available market services will influence the final storage configurations and control strategies selected for each development.

Samsung SDI’s latest agreement increases the capacity contracted with Alpha Omega Power from 0.5GWh to 1.5GWh, extending an existing supply relationship rather than replacing the original order. The financial value of the new contract has not been disclosed in the company’s announcement.

Delivery of the SBB 1.7 equipment is planned before the end of 2026, ahead of the anticipated 2027 construction starts. The subsequent milestones will be installation, connection and electrical commissioning at the individual project sites, followed by confirmation of their actual discharge power and commercial operating dates.