LG Energy Shifts Focus to AI Data Centers Amid Cooling EV Demand
LG Energy Solution Ltd, a South Korean leader in lithium-ion battery production, is pivoting toward energy storage systems for AI data centers as electric vehicle demand falters. The company recently secured battery supply agreements with six humanoid robot developers, signaling a strategic expansion beyond automotive applications.
Fourth-quarter operating losses have accelerated LG Energy's diversification efforts. While EV production capacity remains a priority, US market projections show stagnant demand through next year—driven by reduced incentives and automakers scaling back targets.
Energy storage systems emerge as a bright spot, with global demand expected to surge 40% this year. CFO Lee Chang Sil noted a 22% demand increase in 2025 during post-earnings discussions, underscoring the sector's growth potential despite EV headwinds.
