Samsung SDI captures 66% of AI grid ESS contracts

Samsung SDI has secured the largest share of a government program to deploy AI-managed energy storage systems on distribution grids. Six of the nine winning consortia selected Samsung SDI battery cells, reinforcing the company's competitive standing in the large-scale grid ESS market.

The Ministry of Climate, Environment and Energy announced Friday the results of its "AI-based ESS deployment support project," naming nine winning consortia that include VPP Lab, LG Energy Solution, KEPCO KDN, SK Eternix, HD Hyundai Electric, Gridwiz, Korea East-West Power and Hyundai E&C.

The program stores electricity generated from renewable sources in ESS units installed along distribution lines and uses AI to manage operations efficiently. It targets areas where rising renewable output has strained the grid, using ESS to balance supply and demand instead of expanding transmission infrastructure.

According to preliminary industry tallies, Samsung SDI batteries will be deployed across 21 of the 32 distribution lines covered by the project — about 66 percent of the total. That translates to 84 megawatts of power capacity and 420 megawatt-hours of storage capacity. LG Energy Solution and SK On batteries will cover seven lines and four lines, respectively.

Samsung SDI plans to supply its integrated ESS solution, the SBB (Samsung Battery Box) 1.5, for the project. The SBB 1.5 is an all-in-one unit housed in a 20-foot container, combining high-nickel NCA prismatic battery cells, modules, racks and safety systems. Designed to connect directly to the grid upon installation, it offers ease of setup and space efficiency.

Industry observers attribute the outcome to Samsung SDI's track record from earlier government ESS tenders and the safety reputation of its prismatic battery technology. Because grid-connected ESS units operate over extended periods, evaluators weigh fire safety, system stability and maintenance convenience alongside energy density.

LG Energy Solution trailed Samsung SDI in volume but stood out for its ESS construction and AI-based operating capabilities. The company joined the tender as part of a consortium with Shinhan Asset Management, participating not merely as a cell supplier but as a virtual power plant-based ESS operator. Its allocation of seven lines is understood to be the maximum any single operator could receive.

LG Energy Solution has been highlighting its AI-driven ESS operating expertise, drawing on experience running a distribution grid-linked ESS power plant in Seogwipo, Jeju. With the ESS market widely expected to expand beyond battery supply into grid management, renewable energy control and VPP services, the company is placing particular weight on its credentials as an operator.

SK On will supply ESS batteries for four lines, or about 12 percent of the total. The company is broadening its customer base from electric vehicle batteries into the ESS segment, and the contract gives it additional experience supplying batteries for grid-scale applications.

Battery industry officials view the AI distribution grid program as a precursor to the third round of the ESS central contract market tender, expected in September. Competition among South Korea's three major battery makers was fierce in the first and second ESS tenders, and the latest results are being read as a signal of how the contest for large-scale ESS contracts may unfold.

"Samsung SDI's proven ability to win more than half the volume in the previous two government ESS tenders is likely to have carried weight again this time," an industry official said.