As global electric vehicle (EV) demand shows signs of cooling, South Korea’s leading battery manufacturer is reshaping its growth strategy. LG Energy is now placing a strong bet on energy storage systems (ESS) driven by the explosive expansion of AI-powered data centers, while simultaneously diversifying into robotics and next-generation battery applications.
AI Data Centers Drive ESS Growth
The company expects demand for energy storage systems to surge, particularly in North America, where artificial intelligence data centers are rapidly scaling up. Global ESS demand is forecast to rise 40% this year after a solid 22% increase in 2025. To capitalize on this momentum, LG Energy is converting additional EV battery production lines to ESS manufacturing, raising global ESS cell output from 36 GWh to over 60 GWh. The goal is to secure at least 90 GWh in ESS orders this year.
To ensure smooth operations, a dedicated team has been formed to manage and stabilize end-to-end ESS activities in North America, the epicenter of data center growth.
Robotics and New Battery Applications
Beyond ESS, the company is aggressively expanding into emerging sectors. It has already secured cylindrical battery orders from six global leaders in humanoid robotics. Battery samples for next-generation robot models have been delivered, and discussions on mass production timelines are underway.
In parallel, LG Energy is exploring battery applications in ships and urban air mobility, while also developing solid-state batteries. A commercial solid-state model tailored for humanoid robots is targeted for launch by 2030.
EV Battery Strategy Adjusts to Market Reality
While EV demand in the US and Europe has softened—partly due to reduced tax incentives and automakers slowing electrification—the company is refining its EV battery portfolio. Mass production of lithium-iron-phosphate and high-voltage mid-nickel batteries will begin in the first quarter, aimed at the mid-to-low-end market. Production of new 46-series cylindrical batteries, designed for faster charging, will start at the Arizona plant by year-end. Hybrid vehicle battery output will also expand, reflecting steadier demand.
Financial Pressures and Cost Controls
The company reported an operating loss of 122 billion won for the December quarter, and its shares dipped following the announcement. EV project cancellations in the US and Europe have added pressure, prompting LG Energy to cut capital spending by 40% this year and up to 30% in the coming years. Asset sales, including facilities linked to its Ohio joint venture, are also underway to improve efficiency.
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