South Korean battery firms in US ESS market

South Korean battery manufacturers are expanding their presence in the United States energy storage system (ESS) market. In 2023, Korean lithium-ion battery cell exports to the U.S. rose 71% year-on-year, increasing their market share from 5.6% to 11.4%. Major firms including LG Energy Solution, Samsung SDI, and SK On are increasing production capacity and localizing supply chains to meet demand and comply with U.S. regulations, such as the Inflation Reduction Act.

This market position is expected to be further bolstered by a new U.S. executive order regarding national power grid security. The order grants the Department of Energy authority to prohibit the import and installation of foreign equipment deemed a security threat. While the order does not explicitly name specific nations, analysts suggest it targets Chinese equipment, which currently holds a 76% share of the North American ESS market.

To remain competitive against low-cost Chinese lithium iron phosphate (LFP) batteries, South Korean firms are focusing on strengthening domestic material competitiveness and reducing reliance on Chinese components.