• LG Energy Solution is accelerating its global ESS business, targeting more than 90 GWh in new ESS orders and over 60 GWh of global ESS battery production capacity by the end of 2026, including 50 GWh in North America.
• LG Energy Solution’s ESS expansion includes localized North American manufacturing, large-scale LFP battery production, rigorous safety testing and standards, and integrated turnkey solutions through LG Energy Solution Vertech.

LG Energy Solution is accelerating its global energy storage system (ESS) business to meet rising demand from renewable energy and data center infrastructure. To provide reliable energy storage, the company is expanding its ESS manufacturing footprint, strengthening LFP battery and safety capabilities, and offering integrated turnkey solutions to support customers across key energy storage markets. Through these efforts, LG Energy Solution is positioning ESS as a key growth engine for its business and the broader energy transition.

LG Energy Solution’s ESS Order and Production Targets for 2026

LG Energy Solution secured cumulative ESS orders totaling 140 GWh as of December 2025, demonstrating strong customer demand for its energy storage solutions. In 2026, the company plans to secure new orders above last year’s record high of 90 GWh and nearly double its global ESS battery production capacity to over 60 GWh by year-end, with record-setting performance expected across revenue, production, quality, and supply stability. Of this total, 50 GWh of the planned 60 GWh global production capacity will be located in North America.
During the first half of 2026, LG Energy Solution secured more than KRW 3 trillion in new ESS orders and increased ESS revenue 4.6 times year-over-year, underscoring the accelerating demand for energy storage solutions.

Expanding LG Energy Solution’s Global ESS Production Footprint

To reach its growth targets, LG Energy Solution is rapidly scaling up its global ESS manufacturing footprint.

In the U.S., the Holland plant began production in June 2025, while the Lansing facility started its operations in August 2026. Operations at the Ohio Honda joint venture (JV) plant are also set for 2026, with ESS production planned through partial use of existing EV lines. As part of this broader shift, LG Energy Solution’s Ultium Cells JV with GM began producing ESS-focused LFP battery cells at its facility in Spring Hill, Tennessee. The plant converted a portion of its existing EV battery lines to accommodate ESS growth through an investment of around USD 70 million and began mass production in the second quarter of 2026. This transition leverages the company’s execution capabilities and close collaboration to secure stable supply capacity for ESS production.

In Canada, NextStar Energy in Windsor, Ontario began operations in November 2025 and has been incorporated as a subsidiary of LG Energy Solution since March 2026. “This new ownership structure strengthens Canada’s position as a leader in battery manufacturing. It provides long-term certainty to continue investing in our Canadian workforce and our manufacturing capacity while delivering sustained economic benefits for Canada and Ontario,” said a NextStar Energy spokesperson.

LG Energy Solution Secures Long-Term ESS Supply Agreements
LG Energy Solution has secured multiple ESS supply contracts with global partners. In 2024, the company reached an agreement to supply Qcells with 4.8 GWh of ESS products between 2024 and 2026. It also signed a contract with U.S. renewable energy developer Terra-Gen to provide up to 8 GWh of ESS capacity from 2026 to 2029, and a 7.5 GWh ESS supply agreement with U.S.-based renewable energy investment firm Excelsior Energy Capital starting in 2026. These agreements were contracted through LG Energy Solution Vertech, the US energy storage division of LG Energy Solution. In May 2026, LG Energy Solution Vertech also announced a partnership with DTE Energy, a Detroit based diversified energy company, to supply Michigan-made battery energy storage systems for eight projects across the state over two years.

In 2025, LG Energy Solution entered a 1 GWh ESS supply contract with PGE,with operations expected to begin this year, then added a residential an ESS supply agreement with U.S. energy management company Delta Electronics, covering 4 GWh from 2025 to 2030. A larger residential ESS supply deal followed with EG4 Electronics, a U.S. specialist in residential ESS and inverter solutions, totaling 13.3 GWh from 2025 to 2030.

In February 2026, the company expanded its Qcells partnership with an added 5 GWh for deliveries from 2028 to 2030. “We are committed to supporting projects throughout their lifecycles to enable the long-term success of our customers’ energy storage programs, and we’re looking forward to seeing the impact our joint project portfolio has on the energy grid,” said an LG Energy Solution Vertech spokesperson.

Safety Advantages of LG Energy Solution’s ESS Technology

LG Energy Solution delivers differentiated ESS solutions through LFP-based battery systems, proprietary pack and system design, and rigorous safety validation for large-scale energy storage. These systems are designed to meet stringent North American requirements for thermal runaway propagation mitigation, including UL9540A and Large-Scale Fire Testing (LSFT). LG Energy Solution has successfully completed large-scale fire tests (LSFT) required to meet major ESS safety codes and standards, including NFPA 855 and the International Fire Code (IFC), confirming that fires do not spread to adjacent containers. The results reinforce the reliability of the company’s safety architecture and validate its risk-mitigation approach, supporting competitiveness amid stricter global regulations and safety requirements for large-scale energy storage.

Products are designed not only with today’s safety codes and standards in mind, but also with a vision for next generation of requirements. Fully manufactured and supplied within North America — from cells to packs to systems — the company’s U.S. made production network secures a stable supply for North American customers in a rapidly changing global environment, while also enabling them to meet domestic content requirements with non-FEOC products.

LG Energy Solution’s position is further enhanced by its ability to manufacture at scale across multiple regions. As the only non-Chinese company with large-scale LFP mass-production capabilities, the company meets growing demand for supply chain diversification while maintaining timely and reliable delivery. In North America, LG Energy Solution is the only company producing ESS batteries in the region, enabling customers to meet domestic content requirements.

LG Energy Solution Vertech’s Integrated ESS Solutions

Beyond manufacturing scale, LG Energy Solution Vertech, a subsidiary established in 2022, provides a vertically integrated approach – from battery manufacturing to system integration (SI). Under a single contract, it combines systems, warranties, services, and software as a fully integrated turnkey ESS solution, which has received strong customer feedback.

Reflecting on these advantages, an LG spokesperson noted, “In this area, we have exclusive competitiveness. LG Energy Solution is virtually the only company with a strong manufacturing footprint in North America, years of regional operating experience, and SI-based turnkey solution capabilities that enhance ESS efficiency and resilience.”

Why does LG Energy Solution’s ESS Expansion Matter?

As renewable energy and data center infrastructure continue to drive demand for reliable energy storage, the ability to deliver safe, scalable, and resilient ESS solutions is becoming increasingly important. LG Energy Solution’s localized manufacturing, large-scale LFP production outside China, rigorous safety validation, and SI-based turnkey capabilities address these needs while supporting supply chain diversification. By expanding production capacity and building long-term customer partnerships, the company is positioning its ESS business to play a larger role in the evolving global energy infrastructure.

Key Facts & Figures

• LG Energy Solution had secured 140 GWh in cumulative ESS order backlog as of December 2025, demonstrating the growing demand for its energy storage solutions.
• LG Energy Solution is targeting more than 90 GWh in new ESS orders in 2026, building on its record order performance.
• LG Energy Solution plans to expand its global ESS battery production capacity to more than 60 GWh by the end of 2026, nearly doubling its existing capacity.
• North America is expected to account for 50 GWh of LG Energy Solution’s global ESS battery production capacity by the end of 2026, strengthening the company’s localized manufacturing capabilities.
• LG Energy Solution is expanding its ESS production network across facilities in Windsor, Ontario; Holland and Lansing, Michigan; Jeffersonville, Ohio; and Spring Hill, Tennessee, where its Ultium Cells JV with GM is investing approximately USD 70 million to convert part of its existing EV battery lines for ESS-focused LFP battery production.
• LG Energy Solution has secured multiple ESS supply agreements with major energy and renewable energy companies, including Qcells, Terra-Gen, DTE Energy, Excelsior Energy Capital, PGE, Delta Electronics, and EG4 Electronics, with announced supply volumes ranging from 1 GWh to 13.3 GWh and delivery periods extending through 2030.

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Last Updated: October 2026