South Korea’s leading battery makers are redirecting U.S. capacity toward the grid. As EV demand cools and the market for battery energy storage systems (BESS) accelerates, LG Energy Solution and Samsung SDI are shifting capital, product strategy and manufacturing lines toward stationary grid energy storage. LG has already started large-scale battery cell production for grid applications, targeting grid scale battery storage projects that support renewable energy storage solutions. Samsung SDI is preparing to convert part of its Indiana capacity for BESS production and has secured cathode supply to support its North American storage buildout. The common theme is clear: grid energy storage is emerging as the most credible outlet for underused EV battery capacity, and grid scale battery storage is becoming a core pillar of renewable energy storage solutions in the U.S. power mix.
Tariffs are raising the cost of imported battery supplies just as developers become more selective in their sourcing. Enverus Intelligence® Research (EIR) shows imported battery cell costs increasing from $95.00/kWh to $104.50/kWh after tariffs (Figure 1), reinforcing the case for U.S.-based manufacturing of battery energy storage systems and other grid energy storage hardware. With much of the clean energy supply chain still tied to China, non-Chinese battery majors have an opportunity to localize component manufacturing, reduce foreign-entity-of-concern exposure and capture market share in a more restrictive procurement environment. For developers, domestic grid scale battery storage capacity can help de-risk project timelines, while also aligning with IRA-driven content rules and long-term strategies for renewable energy storage solutions.
The next risk is not under-building supply but overshooting near-term demand. EIR suggests the risk is real. We expect renewable installations to peak in 2028 as developers rush to capture remaining policy support, with batteries growing in tandem to support grid reliability and to underpin renewable energy storage solutions across major markets. Battery energy storage systems deployed at utility scale will be essential to firm intermittent wind and solar, but the buildout of grid energy storage may be more front-loaded than many capacity plans assume. Growth in grid scale battery storage doesn’t disappear after 2028, but it becomes less straightforward as policy support steps down and interconnection queues, market design and local transmission constraints increasingly shape project economics.
For LG Energy Solution and Samsung SDI, the pivot toward stationary storage is therefore a race to capture the most attractive tranche of near-term demand. Both companies are aligning their battery energy storage systems with U.S. grid needs, emphasizing safety, duration and cost per kWh for grid scale battery storage projects. As more ISO markets introduce capacity accreditation frameworks for storage and as hybrid solar-plus-storage plants become the default in new-build renewables, the role of grid energy storage in balancing supply and demand will expand. Yet, battery makers must calibrate manufacturing expansions carefully to avoid a glut of BESS inventory if renewable additions slow after the policy-driven peak.
In our view, the most resilient opportunities lie in applications where grid energy storage is indispensable: ramping support for high-solar systems, frequency regulation, capacity resource adequacy and black-start capabilities. These use cases are best served by flexible, modular battery energy storage systems that can be deployed at substation scale and integrated into broader renewable energy storage solutions. LG and Samsung’s moves to retool EV lines for grid scale battery storage signal that the industry sees this shift clearly. The challenge now is sequencing investment to match the actual adoption curve for grid energy storage rather than a straight-line extrapolation of today’s project pipeline.
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DID YOU KNOW?
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Top 3 Takeaways
1. Why are major EV battery makers shifting toward grid storage?
As electric vehicle demand cools, LG Energy Solution and Samsung SDI are redirecting underused EV battery capacity to grid-scale storage. Grid energy storage is growing quickly as utilities add more wind and solar and need batteries to keep the grid reliable. For battery makers, stationary storage is now the most credible near-term use for excess EV manufacturing capacity.
2. How do tariffs and supply chain risks factor into this shift?
Tariffs are raising the cost of imported battery cells, strengthening the case for U.S.-based battery manufacturing. Domestic production helps developers reduce project risk, comply with IRA content rules, and avoid reliance on Chinese supply chains. This creates a competitive opening for non-Chinese battery makers to localize production and win market share in U.S. grid storage projects.
3. What is the biggest risk facing the grid storage buildout?
The main risk is building too much capacity too fast. Renewable and battery installations are expected to peak around 2028 as policy support drives near-term demand, then become more constrained by grid interconnection, transmission limits, and market rules. Battery makers that pace investment carefully and focus on essential grid use cases like reliability, capacity, and grid support are best positioned to avoid oversupply.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
