"Preparing for the Second Half of the Battery Competition"…K-Batteries Unveil ESS Strategies

Domestic battery makers LG Energy Solution, Samsung SDI, and SK On will take the stage at the third-day conference of "Smart Energy Plus (SEP) 2026," held on the 30th at Hall B of COEX in Seoul Samsung-dong, to reveal their respective winning strategies in the Energy Storage System (ESS) market. Topics expected to be discussed include ESS innovation through software, approaches to the AI data center market, and strategies for non-China supply chains.

Kim Hyeon-tae, Head of ESS Product Planning at LG Energy Solution, will be the keynote speaker at the conference, delivering a lecture titled "From Hardware to Intelligent Platform: Software Innovation Leading the ESS Market." Focusing on the shift in the center of gravity of ESS competition from hardware to software, he is expected to introduce LG Energy Solution's software technology capabilities, which encompass Energy Management Systems (EMS), Energy Market Optimization (EMO) solutions, and digital Operations & Maintenance (O&M), as well as its market competitiveness based on these technologies.

In a pre-interview with Money Today, Kim stated, "Battery hardware has become standardized as a commodity," adding, "Various companies are making efforts to find ways to enhance the value of that hardware." He emphasized, "While it is a given that we meet all safety standards for ESS batteries, the focus should now be on how efficiently we can provide Operating Expenditure (OPEX) to customers."

Kim said, "The first half of the battery competition so far has focused on how much cost could be reduced in terms of hardware," and added, "Now, as we enter the second half, it is a time when AI Transformation (AX) is being introduced for OPEX."

LG Energy Solution is pursuing a strategy to solidify its leadership in the ESS market by expanding its competitiveness from hardware to software leveraging AI. Kim stated, "It does not end with simply manufacturing and selling battery hardware," and previewed, "In a situation where the software aspects of maintenance and management are emerging as key competitive strengths for products, we will discuss LG Energy Solution's market response direction through 'SEP 2026.'"

LG Energy Solution is rapidly expanding its ESS battery business, having secured new order contracts worth over 3 trillion won in the first half of this year alone. The company plans to secure ESS production capacity of over 50 GWh (gigawatt-hours) in North America by the end of this year and increase ESS segment revenue by more than three times compared to the previous year. This year's order target is a total of 90 GWh.

Hyun Chang-seok, Head of Global TPM (Technology Project Management) Team 1 at Samsung SDI, will present on the topic "Two Barriers to Power in the AI Era, Solutions Opened by Batteries."

The expansion of AI data centers is posing two challenges to the power market: the issue of "power supply," which requires stable provision of large-scale electricity, and the issue of "load fluctuation," where power consumption spikes instantaneously due to GPU (Graphics Processing Unit) operation. As AI becomes more advanced and evolves toward the era of AGI (Artificial General Intelligence), the power demand of data centers and the burden on the power grid are expected to grow further.

In a pre-interview with Money Today, Hyun stated, "We will examine the changes in power demand structure brought about by the arrival of the AGI era, next-generation ESS technology trends to address these changes, and global market outlooks." He added, "We will present new growth opportunities created by ESS centered on AI data centers and renewable energy expansion, as well as the direction of future power infrastructure." He further noted, "With the expansion of renewable energy and increasing uncertainty in power supply and demand, the role of ESS is expanding beyond a simple power storage device to become core infrastructure that provides stability and flexibility to the power grid."

Samsung SDI is stepping up efforts to capture the expanding domestic and international ESS markets. In the domestic ESS Central Contract Market, it has secured 629 MW (megawatts) in cumulative orders from the first and second rounds, accounting for 55.8% of the total volume and ranking first in the industry. It is also expanding its U.S. production base. Part of the production line at its Indiana plant, a joint venture with Stellantis called "Star Plus Energy" (SPE), has been converted to produce ternary-based ESS batteries since the fourth quarter of last year. Production of LFP (Lithium Iron Phosphate)-based ESS is scheduled to begin in the fourth quarter of this year.

SK On will unveil regional strategies tailored to the distinct ESS market environments in Korea, the United States, and Europe. Choi Dae-jin, Vice President and Head of the ESS Business Division at SK On, will explain topics including △expansion plans beyond existing long-cycle projects in Korea, △the trend of business expansion for AI data centers in the U.S., and △region-based utilization strategies following the introduction of IAA (Inflation Reduction Act) in Europe, under the theme "SK On's Global ESS Strategy Direction."

In a pre-interview with Money Today, Choi stated, "We view filling this year's ESS order target of 20 GWh positively," adding, "It will be an opportunity to share the BESS market environment in each region and SK On's entry and expansion strategies, particularly explaining North American market outlooks linked to AI data centers and the strategies SK On is preparing for them."

SK On is rapidly building its presence in domestic and international markets. Although it did not secure volume in the first ESS Central Contract Market, it became the largest awardee in the second round by securing 284 MW out of a total 565 MW, or 50.3%. In the U.S., it is positioning AI data centers as a new growth axis. The company judges that this presents a new business opportunity for SK On, which has local production bases, as AI data center construction in the U.S. rapidly increases and policy environments demanding non-China supply chains strengthen.

Choi explained, "As demands for non-China supply chains intensify in the U.S., demand is increasing for products that meet Non-PFE (Non-Prohibited Foreign Entity) requirements." He added, "SK On can meet these relevant requirements based on its non-prohibited foreign entity supply chain, and customer interest and demand have increased significantly recently."

In Europe, it is exploring an ESS market entry strategy leveraging local production bases. As the European Union (EU) strengthens industrial policies emphasizing production within the region, the plan is to respond to ESS demand by utilizing existing Hungarian production lines. Since ESS products are not composed solely of battery cells, it is also expected to present a business strategy of providing products and solutions optimized for customer applications.

Meanwhile, "SEP 2026" is co-hosted by Money Today and COEX, organized by the National Assembly Hydrogen Economy Forum, and will be held at Hall B of COEX from the 28th to the 30th. LG Group, HD Hyundai Electric, Doosan Enerbility, Hyundai Rotem, Unison, the Army, Seoul City, and the Korea Atomic Energy Research Institute are setting up booths to exhibit energy security strategies for the AI era. Electric and hydrogen vehicle strategies from Hyundai Motor, BMW, Mercedes-Benz, Audi, Porsche, and Polestar can also be reviewed. The conference will feature senior executives from Samsung Electronics, SK Hynix, Hyundai Motor, LG Electronics, POSCO Holdings, Bright Energy Partners, OCI Power, and HD Hyundai Electric on the podium, starting with the Army's "Energy Policy Forum."