On January 29th, with global electric vehicle (EV) demand experiencing a slowdown, South Korean battery maker LG Energy Solution (LGES) is making a strategic shift towards the energy storage market for AI data centers. Following the announcement of a fourth-quarter loss, the company disclosed that it has clinched battery orders from six manufacturers of humanoid robots, in a bid to tap into new avenues for revenue growth.

During the earnings call, LGES Chief Financial Officer Lee Chang-sil highlighted that U.S. EV demand is anticipated to stay weak through the next year. This is attributed to the cancellation of U.S. EV tax credit policies and automakers' reduced investment in electrification. In contrast, the energy storage sector is witnessing robust growth, with a 22% increase expected in 2025. Moreover, global demand in this area is projected to surge by 40% this year.

In light of these trends, LGES intends to repurpose more EV production lines. By doing so, it aims to boost its global energy storage battery capacity from 36 GWh to over 60 GWh. Additionally, the company has set an ambitious target of securing at least 90 GWh in orders this year.