As the United States strengthens restrictions on Chinese-made ESS (energy storage system) batteries, South Korea's battery industry is gaining indirect benefits. The combined market share of LG Energy Solution and Samsung SDI has increased compared to last year, while SK On continues to expand its foothold by securing supply contracts one after another.
According to relevant industry sources on the 1st, LG Energy Solution's market share in the North American ESS market for the first half of this year is estimated at 13.6%, and Samsung SDI's at 6.1%. The combined share of both companies reached 19.7%, up approximately 5 percentage points from 13.9% during the same period last year. In contrast, Chinese companies accounted for 76% of the market in the first half of this year.
Compared to 2024 when Chinese companies held a share in the 90th% range, their influence in the North American ESS market is gradually weakening.
With the strengthening of the de-China supply chain trend following the inauguration of Donald Trump's second administration, favorable conditions are being created for South Korea's battery industry.
Furthermore, President Trump recently signed an executive order to strengthen security regulations on BESS (battery energy storage systems). As a result, the position of Chinese-made batteries in the North American ESS market is expected to shrink further.
South Korea's battery industry is responding to these market changes based on local production bases.
LG Energy Solution plans to secure more than 50 GWh (gigawatt-hours) of production capacity by the end of this year by establishing five major ESS manufacturing hubs in North America: Michigan Holland, L-H Battery Company Ohio plant, Ultium Cells Tennessee and Michigan Lansing plants, and Canada NextStar Energy Ontario plant.
Samsung SDI is also accelerating the conversion of existing production facilities to ESS. It will convert part of the electric vehicle production line at its Indiana joint venture plant with global automaker Stellantis, Starplus Energy (SPE), to begin producing LFP (lithium iron phosphate) batteries for ESS starting in the fourth quarter of this year.
SK On is converting part of its Georgia plant's electric vehicle battery production lines to ESS-focused LFP battery production lines and plans to start operations at its Yangsan facility in the second half of the year.
Following a 1 GWh-scale ESS supply contract with renewable energy company Flatiron Energy Development last year, SK On also signed a total 9 GWh LFP battery supply agreement for ESS with U.S. ESS company Neovolt Power covering the period from 2027 to 2031 the day before yesterday.
in INDUSTRY
