A view of LG Solution's NextStar Energy plant in Canada. (Courtesy of LG Energy Solution)

The pivot comes as EV demand weakens due to reduced subsidies, high interest rates and intensifying competition, prompting LG Energy Solution, Samsung SDI and SK On to repurpose some EV battery production capacity for stationary energy storage.

According to BloombergNEF, the U.S. ESS market is projected to grow from 51 gigawatt-hours (GWh) in 2023 to 485 GWh by 2030 and 976 GWh by 2035.

Especially with the Trump administration’s One Big Beautiful Bill Act tightening restrictions on Chinese battery components in projects seeking investment tax credits, developers have accelerated efforts to diversify supply chains, creating fresh opportunities for manufacturers with North American production capacity.

LG Energy Solution is moving aggressively to capitalize on the shift. The company operates five ESS manufacturing sites in North America and plans to expand its global ESS production capacity to more than 60 GWh by the end of this year by ramping up output at facilities in Michigan, Tennessee and Ohio. More than 80 percent, or over 50 GWh, will be concentrated in North America.

The company became the first Korean battery maker to begin mass production of lithium iron phosphate (LFP) batteries for ESS applications in the U.S. last year and remains the only major global battery manufacturer with large-scale local output of ESS-specific LFP batteries.

Earlier this month, LG Energy Solution signed a $1.6 billion LFP battery supply agreement with Michigan-based utility DTE Energy. The batteries will be deployed across eight grid projects, including a dedicated AI data center that Oracle is building for OpenAI.

Samsung SDI is also increasing its U.S. footprint, targeting 30 GWh in annual ESS capacity by the end of this year.

The company has converted part of the production lines at StarPlus Energy, its joint venture plant in Indiana with the automotive manufacturing company Stellantis, to produce ESS batteries, including nickel-cobalt-aluminum (NCA) cells. It also plans to start local LFP battery production later this year.

Samsung SDI plans to expand its U.S. ESS business by leveraging prismatic can‑type batteries known for their safety and durability. The company is currently the only non‑Chinese manufacturer of prismatic ESS batteries in North America.

SK On, a relative latecomer in the ESS market, is pursuing a more aggressive turnaround strategy, aiming to secure more than 20 GWh in global ESS orders this year.

The company plans to convert EV battery lines across its Georgia and Tennessee plants, as well as its joint venture with Hyundai Motor, to ESS production in the second half of the year.

After securing its first large‑scale ESS supply contract in the U.S. market last September, SK On is reportedly in negotiations with several local customers for additional deals totaling more than 10 GWh.

The company recently introduced its dedicated GRIDON technology, the next-generation ESS platform that can work with both direct current and alternating current setups, and plans to start mass production in the third quarter of next year.