Lg energy solution pivots focus from electric vehicles to AI data center energy storage

South Korean firm LG Energy Solution is strategically shifting production emphasis from electric vehicles toward the burgeoning demand from AI data centers. During an earnings call on November 3, CFO Lee Chang-sil outlined aggressive expansion targets, projecting the company's pouch-type energy storage system (ESS) capacity to surpass 50 GWh by the end of 2026 and exceed 70 GWh in 2027. This pivot is driven by the slowdown in EV growth and the massive buildout of data centers. The company reported an ESS order backlog of 160 GWh in the third quarter and recently joined Nvidia’s DSX Ready program as an energy storage supplier. To meet this demand, LG Energy Solution plans to mass-produce LFP 2170 cylindrical batteries in the first half of 2027 and is accelerating sodium-ion battery research, with Ochang plant samples expected within the current year. Furthermore, the company is diversifying its supply chain to align with U.S. restrictions, securing local lithium sources through long-term agreements with Canadian and U.S. suppliers. Despite this growth trajectory, the firm posted a net loss of 296.9 billion won in the third quarter, with revenue reaching 9.6 trillion won.