Tit-for-Tat in US ESS Market: LG EnSol Debuts Prismatic Cells as Samsung SDI Unveils First LFP Batteries

[Korea Financial Times, Kim JaeHun] LG Energy Solution (CEO Kim Dong-myung) and Samsung SDI (CEO Choi Joo-sun) are fiercely competing in the U.S., which has emerged as the largest market for Energy Storage Systems (ESS), by showcasing new technologies and products. Notably, both companies are now targeting product areas and segments where their competitor previously held a strong advantage.

Through this strategy, both companies aim to aggressively secure orders, capitalizing on the weakened influence of Chinese ESS manufacturers in the U.S. due to tariffs and regulations.

According to Samsung SDI, on the 10th, the company is participating in 'RE+ (Renewable Energy Plus) 2025', North America's largest energy industry exhibition currently held in Las Vegas, where it has unveiled its locally optimized next-generation battery product lineup.
The highlight products showcased by Samsung SDI at this event are the next-generation Solid Battery Blocks (SBBs), namely 'SBB 1.7' and 'SBB 2.0'. These products, revealed for the first time at the exhibition, are slated for local production in the U.S. starting next year.

Among these, SBB 2.0 marks Samsung SDI's debut LFP battery product. Until now, Samsung SDI had primarily focused on ternary NCA (Nickel-Cobalt-Aluminum) batteries, unlike its competitors. While NCA batteries offer higher energy density and larger capacity than LFP, their higher manufacturing cost has posed challenges in price competitiveness.

SBB 2.0 features Samsung SDI's proprietary prismatic form factor, incorporating differentiated materials and electrode plate technology. This innovation overcomes the low energy density, a common drawback of existing LFP batteries, while maximizing advantages such as safety and cost-effectiveness. Samsung SDI plans to offer customized solutions to customers by leveraging both SBB 2.0 and SBB 1.7, which is equipped with ternary NCA batteries.

While Samsung SDI unveiled its first LFP battery product, LG Energy Solution introduced prismatic batteries, a segment where Samsung SDI has traditionally excelled. This marks LG Energy Solution's first presentation of prismatic ESS batteries.


LG Energy Solution's prismatic batteries include the JF2 and JF3 battery cell and pack products. These products boast ultra-high energy density exceeding 500 Wh, while also being resistant to external impacts and offering lower production costs. LG Energy Solution's prismatic batteries are scheduled for production in North America, a first for the industry.

To achieve this, LG Energy Solution began the full-scale local mass production of LFP batteries for ESS at its Michigan plant in the second quarter of this year, an industry first in the U.S. This initiative has established a 'Made-in-USA' foundation, ensuring stable supply to local customers and enabling customers to benefit from IRA (Inflation Reduction Act) incentives for ESS installations manufactured in North America.

The primary reason both companies are publicly showcasing new battery products and technologies in the U.S. is the intense competition for orders. The Korea Energy Economics Institute projects that the global ESS installation capacity, which stood at only 44 gigawatt-hours (GWh) in 2023, will expand to 508 GWh by 2030. In particular, the U.S. ESS market is growing rapidly due to increasing electricity demand driven by the surging AI boom.

Furthermore, the diminished influence of Chinese ESS manufacturers in the U.S. market, due to tariff policies and regulations imposed by the Trump administration, presents an opportunity for Korean companies. Currently, the U.S. imposes a 40.9% tariff on Chinese-made ESS batteries, which is expected to increase to 58.4% next year.
Another factor driving Korean battery companies' vigorous pursuit of ESS orders is the accelerated discontinuation of electric vehicle subsidies in the U.S. Starting late this month, the maximum USD 7,500 electric vehicle tax credit will be abolished. The original scheduled date for the subsidy repeal was 2032, meaning it has been brought forward by approximately seven years.

Kim JaeHun (rlqm93@fntimes.com)