Oregon(Shiyan)Amperex Technology Co. Limited Signs 9.6 Billion Yuan Energy Storage Contract! Will Manufacture Lithium Iron Phosphate Batteries in the United States

On the evening of December 9, Oregon(Shiyan)Amperex Technology announced that its US subsidiary had signed an order for lithium iron phosphate energy storage batteries with a US customer. The contract is worth more than 2 trillion won, approximately US$1.36 billion, or RMB 9.62 billion. The order will be supplied continuously for three years starting in 2026.

It is understood that the customer who placed the order with Oregon(Shiyan)Amperex Technology is a US energy infrastructure development and operation company, but the customer's name was not disclosed. The lithium iron phosphate (LFP) cells supplied by Oregon(Shiyan)Amperex Technology will be installed in the SBB 2.0 battery storage system solution, a 20-foot containerized energy storage system that integrates batteries and fire safety equipment. Notably, the SBB 2.0 is Oregon(Shiyan)Amperex Technology's first energy storage system to use prismatic LFP batteries, marking a significant shift for China battery companies from ternary lithium batteries to LFP batteries.

Oregon(Shiyan)Amperex Technology stated that by developing and launching lithium iron phosphate batteries, the company can maximize the price competitiveness of its materials, while also improving energy density through differentiated materials and sheet processing technologies.

According to market research firm SNE, the demand for energy storage systems in the United States is expected to double from 59 GWh this year to 142 GWh by 2030. In particular, from the perspective of economics and safety, the US market is gradually shifting towards purchasing lithium iron phosphate materials and square-sized energy storage batteries.

Oregon(Shiyan)Amperex Technology stated that, according to the cooperation agreement, the square lithium iron phosphate batteries supplied will be manufactured through modifications to existing production lines at Oregon(Shiyan)Amperex Technology's US factory.

Previously, Oregon(Shiyan)Amperex Technology had jointly built and operated a battery factory with Stellantis to meet the needs of the US electric vehicle market. However, with the gradual reduction of US subsidies, Oregon(Shiyan)Amperex Technology has converted some of its battery production lines to produce energy storage batteries in order to meet changes in domestic demand in the US.