Three major domestic battery companies—LG Energy Solution, Samsung SDI, and SK On—are set to face off once again in the government's third central contract market tender for energy storage systems (ESS). Each company is refining its lineup while addressing weaknesses exposed during the first and second tenders.
Indeed, previous competitions resulted in divergent outcomes depending on each company’s products and supply chain strategies. In the first tender held last July, Samsung SDI essentially had the field to itself. Out of a total 563 MW (megawatts), Samsung SDI secured 427 MW, capturing a 75.8% market share. LG Energy Solution obtained the remaining 24.2% (136 MW), while SK On failed to secure any portion.
In the second tender held in February this year, the landscape flipped. SK On secured 284 MW out of a total 565 MW, rising to become the largest supplier with a 50.3% market share. Samsung SDI captured 35.8% (202 MW), and LG Energy Solution obtained 14.0% (79 MW).
According to industry sources, the three battery companies are focusing on strengthening price competitiveness, domestic production and supply chains, and fire safety ahead of the third tender, which is expected to begin soon. They believe that how well each company addresses its weaknesses in the remaining period will determine the outcome of their bids.
Each company's strategy is becoming clearer. LG Energy Solution is concentrating on bolstering domestic production and supply chains. It is considering a plan to initially produce 1 GWh (gigawatt-hour) of ESS-grade lithium iron phosphate (LFP) batteries at its Cheongju Ochang Energy Plant in North Chungcheong Province starting in 2027, with plans to gradually expand production capacity according to demand. The company is also strengthening domestic supply chains for key secondary battery materials, notably by establishing a cooperative framework with L&F for LFP cathode materials used in ESS.
Samsung SDI, meanwhile, is focusing on enhancing price competitiveness while maintaining its strengths in domestic production and supply chains. In the first and second tenders, it highlighted prismatic batteries based on nickel-cobalt-aluminum (NCA) produced at its Ulsan plant, emphasizing advantages such as higher energy density compared to LFP. However, with competitors offering relatively lower-priced LFP-based product lines, Samsung SDI is reportedly considering a strategy of prioritizing LFP batteries depending on the specific conditions outlined in future tender announcements.
SK On appears poised to further strengthen its LFP battery and domestic supply chain strategies, which proved effective in the second tender. It currently holds a total production capacity of 7 GWh across two plants in Seosan, South Chungcheong Province (Plant 1: 1 GWh; Plant 2: 6 GWh). By early next year, it plans to convert half of Plant 2—3 GWh—to an ESS-grade LFP production line targeting Yangsan. Additionally, the company is exploring options to expand its ESS-grade LFP production capacity in Seosan up to a maximum of 6 GWh.
An industry insider stated, "If the third tender exceeds 1 GW, it would translate to a battery order battle equivalent to 6–7 GWh through simple calculation. Even securing just 30% of the volume would amount to 2 GWh, making it an opportunity that battery companies cannot afford to miss."
in INDUSTRY
