Samsung SDI to Mass-Produce LFP Batteries for AI Servers by 2027
Samsung SDI plans to mass-produce cylindrical lithium iron phosphate (LFP) batteries designed for AI server battery backup units (BBU) as early as June 2027. Samples of this product were previously showcased at DCWA 2026. This move highlights the hardware supply chain's adaptation to the surging power demands of AI data centers. It also provides an opportunity for Samsung SDI to boost its cylindrical battery production line utilization, which has faced sluggish demand in electric vehicles and tools. Samsung SDI plans to produce the anode for these batteries at its second factory in Malaysia by introducing dedicated equipment such as mixers and storage tanks to separate raw materials from its existing ternary battery lines.
## BACKGROUND
A Battery Backup Unit (BBU) provides reliable backup power to ensure continuous operation in critical environments like data centers during power outages. Lithium iron phosphate (LFP) is a lithium-ion battery cathode material known for its excellent safety, long cycle life, and cost advantages without requiring precious metals like cobalt.