OEM pivot to Energy Storage Systems (ESS) boosts battery demand [developing]
Key Questions
Why are OEMs pivoting from EVs to Energy Storage Systems (ESS)?
OEMs are shifting incrementally from EVs to ESS and AI applications due to accelerating demand. South Korea targets 20% renewables by 2030 with 100GW BESS, driving this pivot and boosting overall battery demand.
What are the projected global battery production and price trends for 2025-2026?
Global battery production is expected to reach 2.3TWh in 2025, with 65% LFP at $108/kWh. Prices are forecasted to drop to $75-80/kWh in 2026 amid rising ESS demand.
How much growth is anticipated in US Battery Energy Storage Systems (BESS) for 2025?
US BESS capacity is projected to hit 18.9GW in 2025, a 52% increase, with Q4 installations at 5.8GW. Korean firms are investing $20B in 145GWh of projects.
What is Vertech's involvement in North American ESS projects?
Vertech is developing a 16.5GWh LFP facility worth $1.4B in North America, targeting 50GWh by end of year. Koo Vertech leads sole NA ESS efforts aiming for 750GWh by 2030 and projects in Brazil.
What sodium battery advancements has CATL announced for BESS?
CATL's ESIE sodium BESS offers over 300Ah capacity, 97% efficiency, and 15,000 cycles, launching in 2026. China has achieved zero thermal runaway in sodium batteries, surviving 300°C tests.
Shift incremental EV→ESS/AI accelerating (SK 20% renewables/100GW BESS; 2025 2.3TWh 65% LFP $108/kWh→2026 $75-80/kWh; US BESS 18.9GW/2025 +52% Q4 5.8GW/Koreans $20B 145GWh; Vertech 16.5GWh LFP $1.4B/NA 50GWh EOY; batteries >renewables 2026; CATL ESIE sodium BESS >300Ah 97%eff 15k cycles '26; LG BESS offsets Q1 loss/sodium ESS 25.3%CAGR/sodium investments Hedian/BESS software/South 8 LiGas; LGES LFP drone/LS Electric/SDVerse). Koo Vertech/Brazil; Tesla-LGES MI 50GWh; GM Ultium TN $2.3-3B LMR; YoulChon ESS profit; Renault Korea EV ties; Fitch China batteries energy crisis boom.