Tesla has reportedly struck a new multibillion-dollar supply deal with Samsung SDI. The US$2.1 billion agreement will see Samsung SDI provide batteries for Tesla’s Energy Storage Systems (ESS) over the next three years, supporting the automaker’s fast-growing energy division.
According to Korean media reports, Samsung SDI will supply Tesla with more than 3 trillion won (C$2.95BN/US$2.1BN) worth of batteries over the next three years. These batteries will be used in Tesla’s energy storage products, such as the Megapack and Powerwall systems, which help store renewable energy and stabilize electrical grids.
While neither Samsung SDI nor Tesla have issued an official statement confirming the deal, industry insiders told The Korea Economic Daily that the agreement marks one of the largest battery supply contracts in the energy storage sector to date.
Production of these batteries is expected to take place in the United States at Samsung SDI’s joint venture facility with Stellantis in Indiana, which is currently being retooled to include ESS battery lines.
The timing of this deal aligns with Tesla’s record-setting quarter for its energy division. In Q3 2025, the company reported a 44% year-over-year increase in Energy Storage revenue, generating $3.4 billion and accounting for 12% of Tesla’s total revenue.
This isn’t the first large battery deal Tesla has signed for its energy storage business . The company has previously secured a $4.3 billion supply contract with LG Energy Solution for LFP (lithium iron phosphate) batteries used in its Megapack units.
