South Korea's automotive battery companies focus on ESS as a way to make up for sluggish electric vehicle demand

Fluence Energy, a U.S. company that leads the energy storage system (ESS) market, predicts that the global ESS market will grow at an average annual rate of 11% until 2035.
In the battery industry, ESS has emerged as an alternative to make up for the sluggish market caused by the slowing growth of electric vehicles (EVs).
The share of lithium iron phosphate (Eon) batteries in the ESS market has increased from 25% in 2021 to 95% recently.
Korean battery companies are also moving to develop the LFP market. LG Energy Solutions recently launched a large-capacity LFP
The company unveiled a container-type module product equipped with "JF2 cells." By October 2026, the company will convert idle lines at existing factories to ESS production.
Samsung SDI has unveiled the next-generation power ESS "SBB1.5".
The product is equipped with KEL Cobalt Aluminum battery cells and modules, and has an energy density that is 37% higher than conventional products.
SK On holds 96% of the shares of KCE, a U.S. company that develops ESS.
E&S expects to create synergies through merger with parent company SK Innovation
When SK E&S acquired KCE in 2021, its production capacity was expected to increase from a total of about 50 megawatts to 420 megawatts.