Global ESS shipments surge 253%, share reaches 2.7%
Company targets non-China demand in North America, Europe
Large-scale deliveries to DTE Energy and others set for second half
![LG Energy Solution's factory in Holland, Michigan [LG Energy Solution]](https://wimg.heraldcorp.com/news/cms/2026/06/09/news-p.v1.20260528.cb928ae87d7e4e78aaca667f828b2bfc_P1.jpg)
LG Energy Solution has nearly doubled its share of the global energy storage system (ESS) battery market this year, sharpening its profile as demand in North America and Europe expands rapidly. With large-scale orders set for delivery in the second half — backed by local production — expectations for an earnings recovery are growing.
According to SNE Research, an energy-focused market research firm, LG Energy Solution's lithium-ion ESS shipments surged 253 percent year-on-year in the first quarter. Total ESS market shipments reached 195.5 gigawatt-hours, up 78 percent over the same period. LG Energy Solution outpaced overall market growth, lifting its market share to 2.7 percent in the first quarter from 1.4 percent a year earlier — roughly double.
The company has been rapidly converting electric vehicle battery production lines to ESS output to meet demand in non-China markets. First-quarter shipments to North America and Europe reached 32.7 GWh and 29.5 GWh, respectively, up 83 percent and 107 percent year-on-year. China's market posted steady growth of 52 percent, though its share of global ESS shipments slipped below 50 percent.
![LG Energy Solution grid-scale ESS product [LG Energy Solution]](https://wimg.heraldcorp.com/news/cms/2026/06/09/news-p.v1.20260528.4ba1423c96c04dc69a7a6b56282e9072_P1.jpg)
Among South Korea's three major battery makers, LG Energy Solution has moved most aggressively into lithium iron phosphate (LFP) battery production for ESS applications. The company has already established large-scale mass production at its factory in Holland, Michigan, and began its first shipments this year from its plant in Wroclaw, Poland.
A wave of large-scale order deliveries is set to begin in the second half, which analysts expect to accelerate the earnings recovery. In May, LG Energy Solution signed a 6 GWh ESS supply contract with US utility DTE Energy, with deliveries starting this year.
Industry watchers expect LG Energy Solution to return to operating profit in the second quarter. According to FnGuide, the consensus operating profit estimate for the quarter stands at 215.6 billion won (about $139 million), which would mark the company's first profitable quarter in two quarters. In the first quarter, LG Energy Solution posted sales of 6.555 trillion won and an operating loss of 207.8 billion won.
The company's ESS expansion is also accelerating. LG Energy Solution has set an ESS order target for this year of at least 90 GWh — matching last year's order volume — and plans to expand production capacity to more than 60 GWh by year-end. Over the medium to long term, the company aims to raise the combined share of ESS and new businesses to around 40 percent of total sales.
![LG Energy Solution CEO Kim Dong-myung [LG Energy Solution]](https://wimg.heraldcorp.com/news/cms/2026/06/09/news-p.v1.20260413.fa60f85528a14c72a1c263b13515870d_P1.jpg)
At a recent earnings briefing, LG Energy Solution CEO Kim Dong-myung said the company is seizing new growth opportunities as power demand structures shift rapidly. "In North America, we are converting EV assets to ESS to meet demand for a non-China, locally sourced LFP battery supply chain," he said.
Some analysts also expect tariff refunds to bolster profitability. The refunds stem from a February ruling by the US Supreme Court that invalidated tariff measures imposed by the Donald Trump administration. LG Energy Solution filed for a refund of approximately 300 billion won in April and has so far received about 100 billion won.
Song Yun-ju, an analyst at KB Securities, said LG Energy Solution's average production capacity this year stands at 37 to 40 GWh, with its order backlog already exceeding 150 GWh and facilities running at full capacity. "Next year, operating profit is expected to grow to 4.6 trillion won, marking the first time the company enters a cash recovery cycle," Song said.
eyre@heraldcorp.com
