LG Energy Solution Expands North American ESS Capacity for AI Data Centers
LG Energy Solution is expanding its North American energy storage system capacity, expecting to exceed 50 gigawatt-hours by year-end and 70 gigawatt-hours next year. The company is actively targeting booming energy demands from AI data centers to offset slowing electric vehicle growth. This strategic pivot highlights how major battery manufacturers are diversifying away from the cooling EV market toward high-demand infrastructure like AI data centers. By securing long-term supply agreements and joining initiatives like NVIDIA's DSX Ready, LG is positioning itself as a core infrastructure provider for the AI boom. LG's third-quarter ESS order backlog reached 160 gigawatt-hours, and the company plans to mass-produce LFP 2170 cylindrical batteries by the first half of 2027 while accelerating sodium-ion battery testing. Additionally, the company is localizing its cathode, anode, and electrolyte supply chains to comply with US regulatory requirements.
## BACKGROUND
Energy storage systems (ESS) are increasingly critical for stabilizing power grids that feed massive, power-hungry AI data centers. Pouch cells and cylindrical 2170 cells are common lithium-ion battery formats utilized across consumer electronics, electric vehicles, and grid storage due to their high energy density and flexible design.