LG Energy Solution’s Holland, Michigan plant in the United States (Photo courtesy of LG Energy Solution)
SEOUL, Feb. 9 (Korea Bizwire) — As the global shift in power infrastructure accelerates, South Korea’s battery makers are moving aggressively into energy storage systems, transforming what was once a secondary business into a central growth engine.
The ESS market is expanding rapidly, fueled by surging investment in data centers by major technology companies and rising demand for locally produced, non-Chinese batteries in North America.
Industry analysts expect North America to account for roughly half of the region’s overall battery market in the coming years, positioning it as the most consequential battleground for Korean manufacturers.
LG Energy Solution has emerged as an early front-runner. The company said during its fourth-quarter 2025 earnings call that its cumulative ESS order backlog had surpassed 140 gigawatt-hours as of last year, with ESS revenue rising about 40 percent from a year earlier.
For 2026, LG has set a new ESS order target of more than 90 gigawatt-hours and plans to expand production capacity to around 60 gigawatt-hours, more than 50 gigawatt-hours of which will be concentrated in North America.
On Feb. 4, the company secured a 5-gigawatt-hour ESS project with Hanwha Qcells in North America. Two days later, it acquired full ownership of a Canadian battery plant previously operated as a joint venture with Stellantis, securing an immediately deployable production base.
LG is effectively the only company currently manufacturing ESS batteries in North America at scale. With more than 90 percent of global ESS installations based on lithium iron phosphate chemistry, analysts say the company’s early localization strategy gives it a structural advantage.
Samsung SDI’s exhibition booth at “RE+ 2025” (Photo courtesy of Samsung SDI)
The pivot comes as a prolonged slowdown in electric vehicle demand weighs on battery makers. LG has accelerated the conversion of some EV production lines to ESS output, including facilities in Holland and Lansing, Michigan, and parts of its former Stellantis joint venture in Canada. The company aims to more than triple ESS-related revenue over time.
Samsung SDI is also scaling up. The company reported record quarterly ESS revenue in the fourth quarter of 2025 and is broadening its product portfolio centered on prismatic battery-based solutions.
It has expanded its lineup of non-Chinese prismatic ESS products, including the NCA SBB 1.7 and LFP SBB 2.0 models. In the battery backup unit segment, Samsung SDI said it commands roughly 50 percent of the global market based on cell shipments.
This year, Samsung SDI plans to begin local ESS production in the United States and is targeting about 50 percent growth in ESS revenue compared with 2025. The company said it would maximize utilization of existing production lines while pursuing additional mid- to long-term contracts.
SK On, the third major Korean player, has identified ESS as a core pillar of its portfolio rebalancing strategy. The company aims to secure more than 20 gigawatt-hours in ESS orders this year, primarily in North America.
In September 2025, SK On entered the North American market with a 1-gigawatt-hour ESS supply contract with U.S.-based Flatiron. The deal includes options for up to 6.2 gigawatt-hours in additional supply through 2030.
Late last year, SK On ended its BlueOval SK joint venture structure with Ford and said it would independently operate its Tennessee plant as a dedicated ESS production base, targeting commercial operations by 2028.
As battery makers recalibrate in response to softer EV demand, energy storage — once a complementary business — is fast becoming a strategic imperative. In North America, where supply chains are being redrawn and energy infrastructure is being rebuilt, Korea’s battery giants are racing not just for contracts, but for long-term dominance in the next phase of electrification.
Kevin Lee (kevinlee@koreabizwire.com)
