South Korea’s Samsung’s SDI has struck a deal with Tesla to supply more than 3 trillion won ($2.11 billion) worth of ESS (Energy Storage System) batteries to the EV maker, according the Korea Economic Daily. Samsung SDI said nothing has been confirmed yet. The batteries will be used in Tesla’s large-scale storage products, such as Megapack and Powerwall.
If the deal is finalized, it could strengthen Tesla’s position in meeting the increasing global demand for utility-scale storage. It would also be one of Samsung SDI’s largest ESS contracts to date, and would position the firm as a primary primary global battery supplier along with LG Energy Solution and CATL. The South Korean company, which has been supplying batteries to BMW, and Rivian, as well as others has also been expanding its focus from electric vehicles to the renewable energy segment.
READ: NHTSA investigates over 2 million Tesla vehicles over safety concerns (
The deal would also align with Tesla’s ambitions to diversify its supply chain, and reduce reliance on Chinese suppliers. Earlier this year, Tesla signed a reported $4.3 billion deal with LG Energy Solutions for LFP batteries. A deal with Samsung, a major South Korean player, would help advance this role. This comes at a time when battery storage is becoming a crucial part of the global clean energy transition.
This comes more than a month after the U.S. National Highway Traffic Safety Administration (NHTSA) said that Tesla is recalling 12,963 vehicles in the United States due to a defect in a battery pack component that could cause a sudden loss of drive power,
According to Reuters, the recall specifically affects certain 2025 Model 3 and 2026 Model Y cars. The issue centers around a battery connection failure that could cause a sudden loss of drive power, which increases the risk of a crash. To address this, Tesla will replace the faulty battery pack contactor free of charge for all affected vehicles.
As of Oct. 7, Tesla had received 36 warranty claims and 26 field reports related to this defect. Importantly, the company stated it is not aware of any accidents, injuries, or fatalities caused by the problem. Tesla is actively notifying owners of the affected vehicles to arrange repairs. Customers can also reach out to Tesla’s customer service for more information about the recall process.
A loss of drive power means the battery or its connection to the motors is disrupted, preventing the car from accelerating or moving properly. This can cause sudden loss of speed or even stall the vehicle.