• ESS is a core growth engine for LG Energy Solution, rapidly expanding its global manufacturing and production capabilities.
• The company strengthens its competitiveness with rigorous safety standards, localized production, and integrated turnkey solutions.

Renewable energy and data center infrastructure are driving a surge in global energy storage demand. With grid stability, scalability, and reliability now reshaping the next phase of the energy transition, LG Energy Solution is positioning its energy storage system (ESS) business as a key growth engine and realigning its strategy around the expanding ESS market.

Anticipated ESS Order Targets for 2026

As of December 2025, the company had reached cumulative orders for 140GWh. In 2026, the company plans to secure new orders above last year’s record high of 90GWh and nearly double its global ESS battery production capacity to over 60GWh by year-end, with record-setting performance expected across revenue, production, quality, and supply stability. Of this total, 50GWh of the planned 60GWh global production capacity will be located in North America.

LG Energy Solution’s Global ESS Production Facilities

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 is scheduled to start operations in 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 will also begin producing ESS-focused LFP battery cells at the facility in Spring Hill, Tennessee. The plant will convert a portion of existing EV battery lines to accommodate ESS growth through an investment of around USD 70 million, targeting mass production starting in the second quarter of this year. 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.

Long-Term Partners for Long-Term ESS 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 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, Scale, and Single-contract ESS Solution

The company’s longstanding partnerships reflect continued customer confidence in LG Energy Solution’s ESS technology and reliability. Its LFP-based systems feature LG Energy Solution’s proprietary pack and system design, meeting all stringent North American requirements related to 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.

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.”

Localized manufacturing aligned with regulatory requirements, large-scale LFP mass-production capabilities outside China, and SI-based turnkey solutions are shaping the company’s high-performance ESS strategy. The approach is built for scale as renewable energy and data infrastructure continue to expand. LG Energy Solution is ready to meet rising global ESS demand with reliable capacity and end-to-end delivery, supported by higher production output, long-term contracts, and differentiated LFP safety technology.

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