"Growing ESS Market... K-Battery Production Ramp-Up Expected to Gain Momentum"

Independent research firm Growth Research said on October 26 that domestic battery makers are stepping up production as the energy storage system (ESS) market expands amid the growth of artificial intelligence (AI) data centers and renewable energy.

In a report released that day, Han Yonghee, a researcher at Growth Research, said, "New global battery ESS installations reached 108 GW in 2025, up 40% from the previous year, while new installations in the United States rose 60% to 19 GW. As demand for electricity storage grows amid the expansion of AI data centers and renewable energy, the average price of ESS battery packs has also fallen 45% from the previous year, lowering the cost barrier to adoption."

Domestic battery makers are also increasing ESS production to meet rising demand. "LG Energy Solution plans to secure annual production capacity of more than 50 GWh for LFP batteries for ESS in North America by the end of 2026. Samsung SDI and SK On are also working to expand ESS supply through U.S. production and the conversion of existing facilities," Han said. "As customers increase their production, supply volumes of modules, thermal management components, and cooling systems used in batteries could also rise."

Han named Sebang Battery, Shinsung ST, and Hanjung NCS as companies to watch, saying that increased ESS production by domestic battery makers and the expansion of local production in North America could lead to more orders for modules, components, and cooling systems.

"Sebang Battery, Shinsung ST, and Hanjung NCS supply ESS modules and thermal management and cooling components to major battery makers. Whether increased production by their customers and the expansion of supplied product lines translate into higher actual shipments will be key to their earnings growth going forward," Han said.

This content was produced with the assistance of AI translation services.