Tesla’s Megapack Expansion Brings Tailwinds as LG Energy Solution and Samsung SDI Shift Growth Focus to North American ESS

[Financial News] South Korea’s battery industry, which has been going through a difficult period amid a global electric-vehicle demand slowdown, has found a new breakthrough in the energy storage system (ESS) market, driven by the expansion of artificial intelligence (AI) data centers. Tesla, its largest customer, is embarking on a major ESS expansion, allowing LG Energy Solution and Samsung SDI to secure successive orders worth trillions of won and gain a foothold in the North American market. The companies are rapidly converting existing EV battery production lines for ESS products and comprehensively restructuring their business portfolios around a new source of next-generation profits.
According to industry sources on the 13th, Tesla recently began operations at its Megapack plant in Brookshire, Texas, sharply expanding its annual ESS system production capacity in North America to 90 GWh—more than double the previous level.
LG Energy Solution and Samsung SDI, South Korea’s two leading battery makers, are expected to be the biggest beneficiaries of the expansion. According to securities analysts, supplies totaling 23 GWh annually and destined for the Brookshire plant are expected to be provided through the two companies beginning in the fourth quarter.
LG Energy Solution previously signed an ESS battery supply contract worth approximately 6 trillion won with Tesla, rapidly expanding its global order backlog.
Samsung SDI also signed a large contract in January with a major U.S. customer, believed to be for Megapack products. It has since secured additional orders worth trillions of won from local energy companies as it moves to lock in supply volumes.
The power-grid ESS market is experiencing explosive growth as demand from data centers surges. These facilities need to provide massive amounts of electricity reliably as AI computing infrastructure expands.
South Korean companies are making every effort to expand their local production bases to meet growing order volumes.
LG Energy Solution has expanded its ESS production bases in North America to five, including its facility in Holland, Michigan, and plans to secure more than 50 GWh of production capacity in North America alone by the end of this year.
Samsung SDI also plans to convert parts of its existing EV battery production lines, including the StarPlus Energy plant in Indiana, for ESS production and increase its North American production capacity to 72 GWh by 2028.
With concerns mounting over slowing EV battery demand and low-priced competition from China, the North American ESS market has emerged as a strong lifeline for South Korean companies.
As Tesla’s ESS shipments are expected to surge from 80 GWh this year to 120 GWh in 2028, the North American market is poised to establish itself as a clear new growth engine for South Korea’s battery industry.
[email protected] Dong-ho Kim Reporter