Smart Grid News and Analysis

IoT World Forum 2016
IoT World Forum 2016

Samsung SDI and ABB form strategic microgrid commercial alliance

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Samsung SDI, the world’s leading manufacturer of lithium-ion batteries, and ABB, the leading power and automation technology group, have signed a memorandum of understanding to establish a strategic commercial alliance. Samsung SDI and ABB join forces to develop and market microgrid systems that comprise energy storage solutions.

The two companies will establish a global commercial alliance to develop and market modular and scalable microgrid solutions, utilizing lithium-ion batteries for energy storage.

ABB’s global presence and knowledge in microgrid will pave the way for Samsung SDI to gain better access to microgrid systems and markets. At the same time, Samsung SDI’s leading position and expertise in battery and materials will enable ABB to expand business horizon to energy storage systems.

“The alliance with ABB provides Samsung the basis to expand our global No. 1 position into the microgrid market. Together with ABB we will make our utmost effort to develop new products and to pioneer new markets to keep on being the world’s best ESS company.” said Namseong Cho, President and CEO of Samsung SDI.

“ABB is very pleased to sign this Memorandum of Understanding with Samsung SDI. Microgrid applications are expanding rapidly, both in emerging and developed markets, and are a key growth area in ABB’s Next Level strategy,” said ABB CEO Ulrich Spiesshofer. “This strategic alliance allows us to combine our complementary capabilities and will enable us to bring optimized solutions to our customers.”

According to B3, a Japanese market research firm, Samsung SDI was in 2014 the world’s largest lithium-ion battery manufacturer in the world, leading in consumer electronics and stationary applications.

The Energy Storage market for Lithium Ion batteries in microgrids was estimated by Navigant research (2014 report) to reach 3.42GWh by 2022, at a 41% CAGR.