ESS as a 'Surprise Factor': The Resurgence of K-Batteries? … "A New Opportunity Created by AI"

The "resurgence" of K-batteries, which have suffered for years from sluggish front-end demand for electric vehicles, is being cautiously discussed. The keyword for the turnaround is ESS (Energy Storage System). Surging demand for AI (Artificial Intelligence) data centers and the expansion of renewable energy transition are driving increased ESS demand, which is "hard-carrying" the performance of battery companies.

The key question now is whether this trend will continue until next year or the year after. The three major domestic battery companies—LG Energy Solution, Samsung SDI, and SK On—are scheduled to take the stage at the third-day conference of "Smart Energy Plus (SMART ENERGY PLUS·SEP) 2026," held on the 30th at Hall B of COEX in Samseong-dong, Seoul, to reveal their response strategies during the ESS gold rush phase. "SEP 2026" is an event co-hosted by Money Today and COEX, and organized by the National Assembly Hydrogen Economy Forum.

On the 8th, LG Energy Solution disclosed that its revenue for the third quarter of this year reached 9.6434 trillion won, a 59% increase from the same period last year. This is the highest quarterly revenue in the history of LG Energy Solution since its founding. Operating profit was 756 billion won, up 25.7% from the same period last year.

A battery industry official stated, "The growth of the North American ESS business played a significant role in LG Energy Solution's performance improvement," adding, "Revenue increased due to expanded ESS production capacity and higher shipment volumes in the North American region, and profitability improved as fixed cost burdens decreased with increased production."

LG Energy Solution expects its growth trend centered on ESS to continue in the second half of the year. In particular, the North American region is seeing continued growth in the ESS market due to increased power demand from power grid investments and the expansion of AI data centers. In North America, LG Energy Solution has established "five major ESS complex manufacturing hubs" at its Michigan Holland plant, L-H Battery Company Ohio plant, Ultium Cells Tennessee and Michigan Lansing plants, and NextStar Energy Ontario plant in Canada, with plans to secure production capacity of over 50 GWh (gigawatt-hours) by the end of this year. Currently, all plants are fully booked through Yangsan.

The industry also points to new ESS orders as a key variable for performance. LG Energy Solution set its target for new ESS orders this year at approximately 90 GWh (gigawatt-hours), and the industry reports that it has secured about 30 GWh by the first half of the year. Accordingly, the scale of additional orders in the second half and the expansion of the order backlog are expected to be key indicators for gauging future growth in the ESS business.

The direction is similar for Samsung SDI and SK On as well. Samsung SDI's operating profit for the third quarter this year is projected to record the 200 billion won range, similar to the previous quarter (203.8 billion won), driven by strong performance in the ESS business. Considering that it recorded an operating loss of 1.7224 trillion won last year, the recovery trend is clear. In the case of SK On, it returned to profitability for the first time in seven quarters after recording an operating profit of 821.8 billion won in the second quarter.

The future of the ESS market, which is driving the performance recovery of the three major battery companies, can be seen at "SEP 2026." At the event held on the 30th at Hall B of COEX in Samseong-dong, Seoul, △Kim Hyeon-tae, Head of ESS Product Planning and Jeon Ryak-dam-dang (SVP) at LG Energy Solution, will present on "From Hardware to Intelligent Platform: Software Innovation Leading the ESS Market"; △Hyun Chang-seok, Team Leader (Senior Executive) of Global TPM (Technology Project Management) Team 1 at Samsung SDI, will speak on "Two Walls of Power in the AI Era, Solutions Opened by Batteries"; and △Choi Dae-jin, Head of ESS Business Division (Vice President) at SK On, will present on "SK On's Global ESS Strategic Direction."

In a pre-interview conducted by Money Today, Kim Hyeon-tae (SVP) stated, "Battery hardware has become standardized as a commodity," adding, "Various companies are making efforts in directions that can enhance the value of that hardware." He continued, "Under the premise that we naturally meet all safety standards for ESS batteries, it is time to focus on how efficiently we can provide OPEX (Operating Expenses) to customers."

He noted, "The first half of the battery competition so far has focused on how much cost can be reduced in terms of hardware," adding, "Now, as we enter the second half, it is a period where AX (AI Transformation) is being introduced for OPEX."

Hyeon Jang-seok (SVP) explained, "We will examine changes in power demand structures brought about by the arrival of the AGI (Artificial General Intelligence) era, next-generation ESS technology trends to respond to these changes, and global market outlooks," adding, "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 added, "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."

Choi Dae-jin (Head) stated, "We view it positively that we will meet SK On's ESS division order target of 20 GWh this year," adding, "It will be an opportunity to share the BESS market environment by region and SK On's entry and expansion strategies, particularly explaining North American market outlooks linked with AI data centers and the strategies SK On is preparing for them."

He also emphasized, "As demands for non-China supply chains strengthen in the United States, demand for products meeting Non-PFE (Non-Prohibited Foreign Entity) requirements is increasing," adding, "SK On can meet relevant requirements based on its non-prohibited foreign entity supply chain, and customer interest and demand have increased significantly recently."

Meanwhile, at "SEP 2026," held from the 28th to the 30th at Hall B of COEX, LG Group, HD Hyundai Electric, Doosan Enerbility, Hyundai Rotem, Unison, the Army, Seoul City, and the Korea Atomic Energy Research Institute will set up booths to exhibit energy security strategies for the AI era. Electric vehicle and hydrogen vehicle strategies from Hyundai Motor, as well as BMW, Mercedes-Benz, Audi, Porsche, and Polestar, can also be reviewed.