Samsung SDI on track with US LFP cell production, expects demand to outstrip production

energy-storage.news Aug 3, 2026

Samsung SDI on track with US LFP cell production, expects demand to outstrip production

Curated by Shubham · TechCapsules · Aug 3, 2026

AI-summarised brief · reviewed before publication

Samsung SDI is on track to commence lithium iron phosphate (LFP) battery cell production in the United States during the third quarter of 2026. The South Korean manufacturer reported a return to operating profit for the second quarter, marking its first profitability in seven quarters. Revenue reached KRW3.77 trillion, an 18.5% year-over-year increase, driven by strong demand for energy storage systems and high-power batteries for AI data centers. The company attributed this turnaround to a better product mix, favorable US advanced manufacturing production credits, and robust sales in Europe. Samsung SDI aims to secure additional capacity for US battery energy storage system cell manufacturing to meet surging demand. The firm previously debuted its Samsung Battery Box solutions, which utilize domestic production to qualify for tax incentives. With Chinese imports facing restrictions under the One Big Beautiful Bill Act, Samsung SDI is capitalizing on repurposed production lines to serve the growing utility-scale storage market.

💡 Why It Matters

· The shift to domestic LFP production allows Samsung SDI to bypass new trade barriers that exclude Chinese cells from US tax credits.
· This strategic pivot secures a competitive advantage in the rapidly expanding American energy storage sector.

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Blocking New Imported Inverters Will Cost America

The FCC on August 2 added foreign‑produced solar inverters to its “Covered List,” barring import of any new models regardless of the manufacturer’s country, including allies such as Germany’s SMA. The rule cites “unacceptable risks” to U.S. national security and personal safety, but exempts previously approved units and those already in service. Critics argue the ban blocks advanced, grid‑interactive inverters that use solid‑state silicon‑carbide technology, improve efficiency, reduce copper use, and enable functions such as battery integration, vehicle‑to‑grid and real‑time load management. Without these capabilities, utilities may rely more on fossil‑fuel peaker plants and curtail excess rooftop solar, raising overall electricity costs and slowing the transition to distributed renewable energy. Domestic manufacturers lack R&D pipelines, forcing prices for U.S. installers.

💡 By shutting out the most efficient, smart inverters, the ban forces utilities to keep fossil‑fuel generators online, directly inflating electricity rates for American consumers.

energy-storage.news · Aug 3

Concerns over lack of clarity, transparency as US bans foreign power inverters

The Federal Communications Commission’s Public Safety and Homeland Security Bureau announced on July 28 that all newly manufactured “connected power inverters” produced outside the United States are barred from import. The rule targets inverters with Wi‑Fi, cellular, Bluetooth or similar radio‑frequency components that enable remote monitoring or control, labeling them national‑security risks. While the FCC says previously sold or installed units are exempt, it offered no clear guidance on enforcement dates, the definition of “previously authorised” or how the Buy‑America Act’s 65 % domestic‑content threshold applies. Industry experts warn the ambiguity could force a de‑facto ban on most foreign‑made inverters, threatening supply chains for battery‑energy‑storage and solar projects that already rely on imports for up to 60 % of demand in the United States.

💡 The opaque rule could create an immediate inverter shortage, forcing developers to redesign projects or adopt costly work‑arounds and slowing renewable‑energy storage deployment.

energy-storage.news · Aug 3

Grid-forming BESS not yet confirmed for minimum system strength in Australia as…

The Australian Energy Market Operator (AEMO) has launched a trial to determine if grid-forming battery energy storage systems (BESS) can provide protection-quality fault current, a critical requirement for minimum system strength in the National Electricity Market. While grid-forming inverters have demonstrated voltage waveform stability, they have not yet been confirmed to meet the higher fault current standards historically supplied by synchronous machines. This technical uncertainty persists as coal-fired generation retires, increasing reliance on alternative solutions. AEMO’s 2026 General Power System Risk Review identifies grid-forming BESS as a potential supplement to synchronous condensers. The trial aims to verify if inverter-based technologies can deliver fault current with sufficient magnitude and duration for reliable protection systems. This assessment carries significant commercial weight, particularly after Transgrid reported a 38% cost increase for synchronous condensers, with Phase 1 costs reaching AU$1.13 billion. Consequently, Transgrid has proposed substituting 900MW of grid-forming BESS for two planned synchronous condensers, pending confirmation that the technology can credibly contribute to system strength levels under National Electricity Rules.

💡 With synchronous condenser costs surging to AU$1.13 billion, validating grid-forming BESS as a viable alternative is essential to prevent further budget overruns in Australia’s grid modernization. Success in this trial could redefine infrastructure procurement strategies, allowing operators to bypass expensive mechanical solutions in favor of scalable, inverter-based technologies.

energy-storage.news · Aug 3

‘You cannot build a whole electricity system purely on solar hybrids’: Squadron…

Australia’s National Electricity Market has surpassed 50% renewable energy penetration, driven primarily by solar and battery storage. At the Australian Clean Energy Summit 2026, industry leaders acknowledged this milestone but warned that current investment signals are insufficient for the next phase of grid transition. Squadron Energy CEO Rob Wheals stated that relying solely on solar hybrids would require five times more infrastructure, emphasizing the need for a diversified technology mix. Nevenka Codevelle of AusEnergy Services highlighted Australia’s status as the world’s third-largest market for utility-scale battery storage. However, executives noted that capital is flowing disproportionately to solar and storage due to favorable economics, leaving other essential grid technologies underfunded. James Katsikas of EDF Power Solutions argued that Australia must improve its investment framework to compete globally for foreign capital, citing India’s streamlined development processes as a benchmark. The panel concluded that maintaining the ambition and courage of the first half of the transition is critical to overcoming the tougher challenges ahead in securing a reliable, diversified energy system.

💡 Australia’s heavy reliance on solar and storage creates a structural vulnerability that threatens grid stability as coal exits. Without policy reforms to attract capital for diverse technologies, the country risks inefficient infrastructure expansion and increased costs for consumers.

cleantechnica.com · Aug 3

Fuel Cell Trucks And Buses Are Still Coming, And They Still Need…

Despite advancements in electric vehicle batteries, hydrogen fuel cells remain relevant for heavy-duty transport, driving demand for green hydrogen. While electrolysis dominates funding, researchers are exploring alternative production methods to address freshwater scarcity and cost barriers. A multinational team from Columbia University and Ewha Womans University published a study in Nature detailing an alkaline thermal treatment process for brown seaweed. This method offers a carbon-neutral pathway to green hydrogen, leveraging seaweed’s superior carbon sequestration rate and rapid growth without fertilizer. The process yields more hydrogen than traditional gasification methods. Simultaneously, a Korean-led team published findings in PNAS regarding plastic waste-to-hydrogen conversion. Their research highlights alkaline thermal treatment as an efficient recycling alternative, addressing the fact that only 9% of plastic waste is currently recycled. These innovations complement existing electrolysis efforts, targeting niche applications where fuel availability outweighs price sensitivity. The studies suggest that biomass and plastic waste can significantly contribute to the green hydrogen supply chain, offering scalable solutions for industrial decarbonization beyond passenger vehicles and home heating systems.

💡 Seaweed and plastic waste offer untapped, land-free resources for hydrogen production, bypassing freshwater constraints that limit electrolysis scalability. These methods simultaneously address critical waste management crises while supplying fuel for heavy transport sectors where batteries fall short.

energy-storage.news · Aug 3

European Commission approves scheme to support 370MWh of battery storage in Slovenia

The European Commission has approved a €59 million State aid scheme to support the deployment of 370MWh of battery energy storage system capacity in Slovenia. Approved on July 31, the initiative aligns with the EU Clean Industrial Deal and the Clean Industrial Deal State Aid Framework, which remains in force until 2030. The funding, sourced from the EU Just Transition Fund and ETS Modernisation Fund, will provide direct grants for constructing new standalone battery assets. Commission Executive Vice President Teresa Ribera stated that increased storage will enhance grid stability, reliability, and efficiency while ensuring electricity supply security. This approval follows similar recent measures, including a €150 million scheme for Romania. The Slovenian plan aims to accelerate clean energy rollout and integrate renewable sources, marking a significant step in the region’s decarbonization efforts under the new regulatory framework designed to boost European industrial growth and sustainability.

💡 This approval validates the Clean Industrial Deal State Aid Framework as a functional mechanism for financing grid-scale storage in Central Europe. It demonstrates how EU funds are shifting from crisis-response measures to long-term industrial decarbonization strategies.