Growth Research: “ESS production ramp-up gathers pace... SEBANG GLOBAL BATTERY, Shinsung ST and Hanjung NCS set to benefit”

[Financial News] With the energy storage system (ESS) market growing amid the expansion of artificial intelligence (AI) data centers and renewable energy, analysts say increased production by domestic battery makers could improve earnings at related component suppliers. SEBANG GLOBAL BATTERY CO., LTD., Shinsung ST and Hanjung NCS were named among the key beneficiaries.
On the 26th, independent research firm Growth Research said, “Increased ESS production by domestic battery makers and expanded local production in North America could lead to more orders for modules, components and cooling systems,” naming SEBANG GLOBAL BATTERY CO., LTD., Shinsung ST and Hanjung NCS as companies to watch.
According to the report, new global installations of battery-based ESS totaled 108 GW last year, up 40% from the previous year. New installations in the United States also rose 60% to 19 GW. The average price of ESS battery packs fell 45% over the same period, lowering the cost of adoption.
Domestic battery makers are also increasing ESS production to meet growing demand. LG Energy Solution plans to secure annual production capacity of at least 50 GWh for lithium iron phosphate (LFP) batteries for ESS in North America by the end of this year. Samsung SDI Co., Ltd. and SK On are also working to expand ESS supply by increasing production in the United States and converting existing facilities.
SEBANG GLOBAL BATTERY CO., LTD. supplies ESS modules to LG Energy Solution through its subsidiary, SEBANG LiTHIUM BATTERY CO., LTD. It plans to invest approximately KRW 150 billion and begin shipments in the fourth quarter of this year. Its medium-term annual revenue target for its North American ESS business is KRW 800 billion.
Shinsung ST is expanding its product lineup for LG Energy Solution from busbars and module cases to heat sinks. It also plans to increase the number of its U.S. production lines from four to eight and expand annual production capacity to KRW 240 billion by 2027.
Hanjung NCS supplies liquid-cooling systems for ESS to Samsung SDI Co., Ltd. It plans to increase its combined annual production capacity in South Korea and the United States to approximately KRW 600 billion through an expansion in Indiana.
Han Yong-hui, a researcher at Growth Research, said, “ESS demand is rising with the expansion of AI data centers and renewable energy, while domestic battery makers are also stepping up production.” He added, “SEBANG GLOBAL BATTERY CO., LTD., Shinsung ST and Hanjung NCS supply ESS modules and thermal-management and cooling components to major battery makers. Whether their customers’ production increases and the expanded range of products they supply translate into higher actual shipments will be key to earnings growth going forward.”
[email protected] Bae Han-geul Reporter