U.S. grid security order creates opportunity for South Korean battery firms

A new U.S. executive order aimed at protecting the national power grid is expected to impact the energy storage system (ESS) market, potentially benefiting South Korean battery manufacturers. The order allows the Department of Energy to prohibit the import and installation of foreign bulk power system equipment deemed a security threat. While the order does not name specific countries, analysts suggest it targets Chinese equipment, which currently holds a 76% share of the North American ESS market.

South Korean companies like LG Energy Solution and Samsung SDI are projected to reach a combined production capacity of 90GWh by the end of this year. As these firms expand local production in the U.S., they may capture market share previously held by Chinese competitors.

Experts emphasize that success in the U.S. market will depend on more than just cell production. To compete effectively against low-cost Chinese lithium iron phosphate (LFP) batteries, South Korean firms must strengthen their domestic material competitiveness and establish a supply chain that minimizes reliance on Chinese components, particularly as U.S. regulations against foreign entities continue to tighten.