AES Energy Storage and Samsung SDI (006400.KS), announced a Joint Development and Supply Agreement to develop and deploy multi-megawatt energy storage systems to increase the capacity, improve responsiveness and enhance the efficiency of electric grids.
With this agreement, AES Energy Storage expands its supplier and technology partner base, while Samsung SDI strengthens its position in the lithium-ion battery business by bringing their capabilities to new platforms. AES Energy Storage is a subsidiary of the AES Corporation (NYSE: AES) with 16 megawatts (MW) of installed capacity and Samsung SDI is a developer and manufacturer of lithium-ion batteries.
Under the agreement, Samsung SDI plans to supply an initial 20MW of Battery Energy Storage Systems to AES Energy Storage to be deployed to one of the sites in its 500 MW energy storage development pipeline. The project will deliver commercial spinning reserve and frequency regulation, which are ancillary services that help grid system operators maintain the balance between generation and load. Additionally, the agreement provides the option for AES Energy Storage to source additional products from Samsung SDI.
Jin-Gun Lee, Sr. Executive Vice President of Samsung SDI, said, “This agreement will be a good opportunity for Samsung SDI to expand its business portfolio from small-sized batteries for IT application and EV batteries to Energy Storage Systems.”
Samsung SDI Co. which is headquartered in South Korea, is the global leading manufacturer of Lithium Ion Battery for IT application such as Cell Phone, Note PC and Industrial Application. And to expand its business scope of Battery, Samsung SDI set up the Joint Company of Battery for xEV with Bosch in 2008.
In August, AES Energy Storage ordered 44 megawatts (MW) of utility-scale battery systems from A123 Systems (Nasdaq: AONE).
