LG Energy Solution Targets Data Center Energy Storage Demand to Hedge Against Sluggish Electric Vehicle Market

Glonghui, January 29｜Korean battery manufacturer LG Energy Solution is shifting towards the AI data center energy storage market to cope with the slowdown in global electric vehicle demand. After announcing a loss in the fourth quarter, the company revealed it has secured battery orders from six humanoid robot manufacturers to diversify its revenue sources. The company's CFO, Lee Chang-sil, stated during a conference call following Thursday's earnings release that due to the cancellation of the US electric vehicle tax credit policy and reduced electrification investment by automakers, US electric vehicle demand will remain weak until next year. However, the energy storage business is experiencing strong growth, with a 22% increase in 2025 and global demand expected to grow by 40% this year. Lee Chang-sil said LG Energy Solution will convert more electric vehicle production lines to increase its global energy storage battery capacity from 36 GWh to over 60 GWh, aiming to secure at least 90 GWh in total orders this year.