Wedoany.com Report-Nov. 18, LG Energy Solution announced plans to begin mass production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in Korea in 2027. The company said Monday that it will start constructing new production lines at its Ochang Energy Plant in North Chungcheong by the end of this year, with full operation scheduled for 2027. In the first phase, the facility will produce 1 gigawatt-hour of batteries, and production capacity will expand in line with market demand.

LG Energy Solution’s plant in Michigan

During Monday’s ceremony, Kim Hyung-sik, head of the company’s ESS Battery Division, said: “Ochang Energy Plant serves as the ‘mother factory’ for all product development and manufacturing at LG Energy Solution. Producing LFP batteries for ESS here marks the starting point for a greater leap forward in Korea’s ESS industrial ecosystem.”

LG Energy Solution is currently the only non-Chinese company with a mass production system for LFP batteries used in ESS. It began producing LFP batteries at its Nanjing plant in China last year and added a production line at its Michigan plant in the United States in June. By the end of the third quarter, the company’s cumulative order backlog had approached 120 gigawatt-hours.

LFP batteries hold a significant position in the global ESS sector, serving more than 90 percent of the market. Compared with nickel-cobalt-manganese (NCM) batteries, LFP batteries offer stronger cost advantages and reduced risks associated with ignition or fire, which supports their growing adoption in large-scale storage applications.

A company representative said: “We expect this to advance Korea’s ESS industry by leveraging synergy among domestic technology, a Korean supply chain and participation in the public sector. By carrying out LFP battery production, assembly and testing at domestic plants, we will share mass production technology and expertise, contribute to industrial and economic development and enhance the reliability of long-duration ESS operations.”

The new project is expected to support the expansion of Korea’s ESS capabilities through localized production and technological development. It also reflects growing global demand for stable and cost-effective energy storage solutions, driven by the increasing need for systems that can balance power grids and support renewable energy integration.

LG Energy Solution’s strategy includes reinforcing production bases in multiple regions to meet the rising demand for LFP batteries. The company aims to build a resilient and diversified supply structure by coordinating production activities across Korea, China and the United States. With continued orders and expanding capacity, the company plans to strengthen its position in the international ESS battery market while supporting industrial growth in Korea.