America’s artificial intelligence boom is creating a challenge that advanced chips alone cannot solve. The rapid expansion of data centers requires massive and stable electricity supplies, turning energy storage into a critical part of the next technology infrastructure race.
That shift is creating a new opportunity for South Korea’s battery industry as electric vehicle demand slows.
LG Energy Solution, Samsung SDI and SK On, three of South Korea’s largest battery manufacturers and major players in the global battery supply chain, are accelerating their expansion into North America’s energy storage system market. The companies are converting existing EV battery facilities, increasing local production and securing contracts as demand grows from power grids, renewable energy projects and AI-related infrastructure.
LG Energy Solution, a global battery manufacturer that supplies batteries for electric vehicles and energy storage systems, has expanded its North American strategy through Ultium Cells, its joint venture with General Motors. The partnership recently began mass production of lithium iron phosphate battery cells for ESS products at its Spring Hill, Tennessee plant.
The move follows a $70 million investment to convert part of the existing EV battery production lines for energy storage use, allowing the company to respond to changing market conditions as demand shifts beyond electric vehicles.
The Tennessee facility strengthens LG Energy Solution’s North American ESS production network, which also includes plants in Michigan, Ontario and Ohio. The company is expected to secure about 50 GWh of production capacity in the region as it targets 90 GWh in new ESS orders this year.
Samsung SDI, the battery affiliate of South Korea’s Samsung Group, is also expanding its ESS presence through StarPlus Energy, its joint venture with Stellantis in Indiana. The company is converting several production lines for ESS batteries, with its first lithium iron phosphate battery line expected to begin operations in September.
Samsung SDI has also increased its presence through major supply agreements, including a contract worth more than $1.3 billion with a U.S. energy infrastructure company and another deal valued at about $995 million this year.
SK On, the battery unit of South Korea’s SK Group, is also adapting its U.S. manufacturing network for the growing ESS market. The company has converted part of its Georgia facility for energy storage production and plans to manufacture ESS products at its Tennessee plant.
The company recently introduced its GRIDON ESS brand and its next-generation GRIDON Gen2 product at Cleanpower 2026 in Houston as it expands relationships with energy customers. SK On is aiming to secure more than 20 GWh in global ESS orders this year.
For years, Korean battery makers focused their North American investments on electric vehicles. Now those same manufacturing networks are becoming an advantage as AI growth increases electricity demand and energy storage becomes a larger part of the power supply chain.
The shift is already supporting financial recovery. LG Energy Solution returned to an operating profit in the second quarter with $75 million in operating income, helped by increased ESS shipments in North America. Samsung SDI expects earnings improvement in the second half of the year, while SK On is working to reduce losses and improve profitability.
As AI companies race to expand computing capacity, the competition is moving beyond semiconductors. Reliable energy infrastructure is becoming another key part of the technology race, and Korean battery makers are positioning themselves to supply it.
