LG Energy Solution announced on November 5 that it will not participate in the third competitive bidding for the energy storage system (ESS) central contract market. The decision is believed to have been influenced by intense price competition in the previous first and second rounds of bidding.
In a statement, LG Energy Solution explained that this strategic decision is based on a focus on efficiency and long-term competitiveness rather than short-term volume acquisition.
"We plan to prioritize ensuring that the volumes secured in the first and second central contract markets, as well as projects already in place such as the AI-supported distribution network ESS construction project, proceed without disruption," the company stated.
Additionally, LG Energy Solution will accelerate the development and commercialization of next-generation products, including sodium-ion batteries, at its energy plant in Ochang, while continuing efforts to revitalize the domestic battery industry ecosystem.
The company also plans to expand its ESS business area, moving from a focus on battery supply to energy solutions that include system integration (SI), AI-based operations, and virtual power plants (VPP).
LG Energy Solution emphasized, "We will continue to enhance our battery cell competitiveness by integrating BMS and AI-based operational technologies, providing differentiated solutions that enable customers to operate ESS more safely and efficiently as an energy platform company."
In previous rounds, LG Energy Solution secured 135MW (24.2%) of the total 563MW awarded in the first ESS central contract market and 79MW (14.0%) out of 565MW in the second round. The total volume secured from both bids amounts to 214MW, with Samsung SDI and SK On achieving the highest market shares of 75.8% and 50.3%, respectively, in the first and second rounds.
* This article has been translated by AI.
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