LG Energy Solution Sparks New Strategy with ESS Push in U.S.

LG Energy Solution Ltd. (LGES) is accelerating its energy storage system (ESS) business in the U.S. as part of a strategic pivot to counter headwinds in its electric vehicle (EV) battery segment.

Amid rising tariffs and slowing global EV demand, LGES is shifting focus to capitalize on the growing ESS market. The move was confirmed by Chief Financial Officer Lee Chang Sil following stronger-than-expected Q2 earnings. Lee noted that the expected expiration of U.S. EV tax credits after September 30 could further dampen automotive battery demand.

However, he expressed confidence that growth in the ESS segment, supported by the U.S. advanced manufacturing credit, would offset automotive sector challenges. “Shortfalls from auto batteries can be offset by the expansion of the ESS business,” said Lee, adding that LGES will also focus on reallocating resources and improving cost efficiency. “We expect meaningful profit improvement in the second half.”

This shift underscores LGES’s adaptability, as it leverages its battery technology expertise to pursue opportunities in the rapidly expanding energy storage market.

News by Rahul Yelligetti.