LG Energy Solution Targets Energy Storage Market Amid Decline in EV Demand
LG Energy Solution Ltd. is pivoting towards energy storage systems (ESS) due to a decline in electric vehicle demand, particularly in the US. The company anticipates a 40% increase in global ESS demand this year and plans to boost its production capacity from 36 GWh to over 60 GWh, while also securing contracts with humanoid robot developers and exploring new battery applications. Amid these challenges, LG Energy reported a Q4 operating loss of 122 billion won and will reduce capital expenditure by 40% to optimize existing production capabilities.
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LG Energy Solution Ltd. is shifting focus to energy storage systems (ESS) in response to declining demand for electric vehicles (EVs), particularly in the US market. The company anticipates a 40% increase in global ESS demand this year, following a 22% rise in 2025.
LG Energy plans to enhance its production capacity of ESS cells from 36 GWh to over 60 GWh and aims to secure orders totaling at least 90 GWh in 2026. Additionally, LG Energy has secured contracts with six humanoid robot developers and is exploring battery applications in maritime and urban air mobility sectors.
The company reported an operating loss of 122 billion won ($84 million) for Q4, with a 7.6% decline in overall sales. In response to market challenges, LG Energy will cut capital expenditure by 40% this year and focus on maximizing existing production capabilities.
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