LG Energy Solution skips third ESS bidding round, prioritizing long-term competitiveness over price competition

LG Energy Solution announced on the 5th that it "did not participate in the competitive bidding announcement for the 3rd ESS (Energy Storage System) Central Contract Market."

Through a statement sent to accredited reporters, the company explained that this was a "strategic decision aimed at enhancing operational efficiency and mid-to-long-term competitiveness within limited resources and personnel, based on 'selection and concentration,' rather than securing short-term volumes through price competition." This is interpreted as a decision to avoid immediate "cut-throat" price competition in the domestic ESS bidding market.

An LG Energy Solution official stated, "We plan to prioritize ensuring that the volumes secured from the 1st and 2nd Central Contract Markets and already secured projects, such as the 'AI-Utilizing Distribution Network ESS Construction Support Project,' proceed without any issues." The official added, "Furthermore, at our Ochang energy plant, we will accelerate the development and commercialization of next-generation products such as sodium-ion batteries, and continue to make steady efforts to revitalize the domestic battery industry ecosystem."

LG Energy Solution is expanding its ESS business from a battery supply-centric model to energy solution businesses including system integration (SI), AI-based operations, and virtual power plants (VPP). Domestically, it has been operating distribution network-linked ESS and VPPs in Jeju since 2024. In July of this year, the company was selected as an operating business partner for the government's "AI-Utilizing Distribution Network ESS Construction Support Project" and is scheduled to operate a 140MWh (megawatt-hour) scale ESS in the Honam region for 20 years starting from 2027. In North America, it provides integrated solutions ranging from design to operation and maintenance through its SI subsidiary, Vertech.

An LG Energy Solution official explained, "Going forward, by adding BMS and AI-based operational technologies to our battery cell competitiveness, we will grow into an energy platform company that provides differentiated solutions enabling customers to operate ESS more safely and efficiently."

Meanwhile, the government announced that the scale of the 3rd ESS bidding would be doubled compared to the 1st and 2nd rounds, totaling 1,180MW (megawatts). This includes 1,100MW on land and 80MW in Jeju. Selected business partners must complete ESS construction by February 2029. Bidding will proceed until November 11, with the awardee to be determined in the same month.