Samsung SDI is aggressively expanding its North American energy storage footprint by locking down a significant supply agreement with utility-scale developer Alpha Omega Power (AOP). Through its Michigan-based subsidiary, Samsung SDI America (SDIA), the company has signed a 1 GWh contract to provide integrated energy storage system (ESS) solutions. This latest deal, combined with an initial contract signed late last year, brings the total volume between the two entities to 1.5 GWh. The agreement signals a growing reliance on non-Chinese battery technology for large-scale U.S. grid infrastructure projects.
Samsung SDI SBB 1.7 and Indiana Production
The agreement centers on the deployment of the Samsung Battery Box (SBB) 1.7, a fully integrated ESS solution utilizing high-nickel nickel cobalt aluminum (NCA) prismatic battery technology. Samsung SDI is positioning this hardware as a high-density alternative to previous models, claiming a 17% increase in energy density over the SBB 1.5 while maintaining a standard 20-foot footprint. To meet domestic requirements, all cells and modules will be manufactured at the StarPlus Energy (SPE) plant located in Kokomo, Indiana.
The company expects to deliver these units by the end of this year to support AOP’s upcoming construction schedule. The SBB 1.7 incorporates proprietary Enhanced Direct Injection (EDI) technology, which is designed to inject fire-extinguishing agents directly into individual battery modules. Additionally, the system utilizes AI-powered algorithms intended for early anomaly detection and battery life prediction, with a design life targeted at 25 years of continuous operation.
Grid Reliability in WECC and ERCOT Markets
Alpha Omega Power intends to deploy these ESS solutions to support large-scale power projects aimed at addressing grid reliability and rising power demand. Construction for these projects is scheduled to begin next year within the Western Electricity Coordinating Council (WECC) and Electric Reliability Council of Texas (ERCOT) power markets. By securing these localized supply chains, AOP aims to bolster its capacity as an independent power producer.
Samsung SDI is currently the only non-Chinese supplier of prismatic ESS batteries in North America. The company is leveraging this position to meet stringent U.S. safety standards, including NFPA 855 and UL 9540. As AOP expands its U.S. storage portfolio, Samsung SDI is using these contract wins to test whether its prismatic "PrismStack" technology can effectively capture market share from competitors. The company noted it is currently in discussions with several other local customers regarding potential future supply agreements.
Key Takeaways
- Samsung SDI and Alpha Omega Power have reached a total of 1.5 GWh in supply agreements.
- All battery cells and modules will be manufactured at the StarPlus Energy plant in Kokomo, Indiana.
- The SBB 1.7 solution features high-nickel NCA chemistry and is designed for 25 years of continuous use.
EnergyInsyte's Take
In our view, this agreement highlights a critical strategic pivot toward domestic, non-Chinese supply chains for utility-scale storage. By utilizing the StarPlus Energy plant in Indiana, Samsung SDI is not just selling hardware; it is selling "de-risked" compliance for developers operating in sensitive markets like ERCOT and WECC. The focus on prismatic technology and integrated fire suppression (EDI) suggests that safety and regulatory adherence are becoming the primary differentiators in the ESS market. As AOP moves into construction next year, the success of this 1.5 GWh rollout will serve as a benchmark for whether high-nickel, American-made prismatic cells can scale effectively against lower-cost global alternatives.
Questions & Answers
How does the SBB 1.7 compare to the previous SBB 1.5 model in terms of performance?
The SBB 1.7 delivers 17% higher energy density than the SBB 1.5 while maintaining the same 20-foot physical footprint.
Where will the battery components for this agreement be manufactured?
All cells and modules will be manufactured at the StarPlus Energy (SPE) plant located in Kokomo, Indiana.
Which specific power markets will the Alpha Omega Power projects serve?
The ESS solutions are scheduled for deployment in the WECC (Western Electricity Coordinating Council) and ERCOT (Electric Reliability Council of Texas) power markets.
What technical features does Samsung SDI include to address battery safety?
The SBB 1.7 includes proprietary Enhanced Direct Injection (EDI) technology for injecting fire-extinguishing agents into modules, and it meets NFPA 855 and UL 9540 safety standards.
Source: Samsung SDI
