AI Data Centers and Renewables Are Reshaping the Grid: Why Non-Chinese Korean ESS Is Racing to the U.S.

The power grid isn’t what it used to be. AI data centers are sucking up electricity, while renewable energy keeps expanding even as output remains volatile. The reality created by this combination is simple: this is no longer just an era of high power consumption, but an era that needs systems capable of holding power steady and secure. ESS is no longer just auxiliary equipment for renewables—it has become core infrastructure underpinning grid stability and data center backup.

That is why U.S. orders are growing. As multiple forces converge at once—efforts to reduce reliance on Chinese batteries, tariffs and the IRA, and the broader restructuring of supply chains away from China—orders are pouring into non-Chinese ESS batteries from players like Samsung SDI and LG Energy Solution. Behind that comes a whole chain of follow-on demand, from PCS and enclosures to full system integration. Still, this is not a story for pure excitement. Korea’s domestic ESS market has remained deeply scarred and subdued since the string of fires from 2017 to 2019, and current demand is far too heavily concentrated in the U.S. Exports are red-hot, but the domestic demand base is hollow. Is this imbalance really something to just let pass?

ESS Batteries & Cells — The Heart of Storage (4 companies)

At the end of the day, the heart of ESS is the battery and the cell. What stands out most in this cycle is that the conditions the U.S. wants have become fairly clear: a non-China supply chain, the ability to handle large-scale projects, and proven safety and mass-production capability. Major orders won by Samsung SDI and LG Energy Solution show that K-ESS batteries are now being seriously incorporated as an alternative within U.S. power infrastructure.

Samsung SDI secured its first U.S. ESS order worth more than KRW 2 trillion in 2025, led by its integrated ESS platform SBB 2.0 and prismatic LFP cells. The non-Chinese prismatic battery angle stands out in particular. LG Energy Solution is mass-producing LFP batteries for ESS in Holland, Michigan, and has secured a U.S. ESS supply contract worth KRW 2.4 trillion. Amogreentech goes beyond finished ESS products to also handle nano magnetic materials and thermal management materials, making it a practical and quietly strong player deeper inside the value chain, especially since ESS is its largest revenue pillar. VINATech is different in character from battery-based ESS, but it has the world’s largest CAPA in supercapacitors for short-duration energy storage. There is no reason storage has to take only one form. As power quality and instant-response capability become more important, this segment is starting to come back into view.

Company	Core focus
Samsung SDI	Integrated ESS (SBB 2.0, prismatic LFP) — first U.S. ESS order worth over KRW 2 trillion in 2025 (non-Chinese prismatic)
LG Energy Solution	LFP batteries for ESS — mass production in Holland, Michigan; U.S. ESS supply contract worth KRW 2.4 trillion
Amogreentech	Finished ESS products + nano magnetic materials and thermal management materials (ESS is its largest revenue pillar)
VINATech	Supercapacitors (short-duration energy storage) with the world’s largest CAPA — distinct from battery-based ESS

PCS & Systems — Connecting Batteries to the Power Grid (5 companies)

A battery alone does not make an ESS run. The real work of connecting stored electricity to the grid, converting it into the required form, and operating it reliably falls to PCS and system integration. In the industry, this is often seen as the segment that ultimately determines real-world ESS competitiveness. As ESS exports grow, the real expansion of the value chain happens not in the battery itself, but in the PCS, grid interconnection, enclosures, and system integration behind it.

LS ELECTRIC has capabilities in ESS PCS through its PEBB platform as well as grid-connected system integration, with project references including a 20MW ESS project in Japan. Destin Power is an unlisted company widely regarded as No. 1 in Korea and among the global top three in mid- to large-scale ESS PCS. Willings develops and manufactures its own PCS for solar and ESS applications, while EN Technology is an unlisted specialist focused on PCS linked to ESS and renewable energy. Seojin System started with ESS enclosures and mechanical structures, and is now expanding into system integration and PCS for data centers. What the U.S. wants is not just a box of batteries, but a working system. In that sense, the export competitiveness of K-ESS is far more multidimensional than it may appear.

Company	Core focus
LS ELECTRIC	ESS PCS (PEBB) · Grid interconnection system integration (SI) — including a 20MW ESS project in Japan
Destin Power	Mid- to large-scale ESS PCS (power conversion), No. 1 in Korea and among the global top three (unlisted)
Willings	In-house development and manufacturing of PCS (power conversion) for solar and ESS
EN Technology	Specialist in PCS for ESS and renewable energy integration (unlisted)
Seojin System	ESS enclosures and mechanical structures + expansion into system integration and PCS for data centers

What to Watch Going Forward

The next phase looks much clearer. AI data centers are power-hungry facilities, but they are also among the least tolerant customers when it comes to outages and power quality issues. The expansion of renewables is also becoming increasingly difficult without ESS. On top of that, if the U.S. continues to push its de-China policy, opportunities for Korean companies are likely to keep expanding across non-China ESS batteries, PCS, enclosures, and even system integration. The real growth arena for K-ESS is not simply supporting renewables, but exporting data center backup solutions and grid stabilization infrastructure.

That said, there are also some points that need a sober look. The domestic market still has not fully shaken off the trauma of past fire incidents, and demand is overly concentrated in the U.S. In other words, even a single policy shift could be felt in a big way. On the PCS side, despite strong technology, the sector has a high share of small and unlisted companies, which brings financial staying power into question. What matters now is not just watching the headline numbers from the export boom. We also need to look at restoring trust in the domestic installation market, building a portfolio that reduces dependence on the U.S., and strengthening the industrial base that can sustain PCS and system companies. That is the only way this boom does not end as a short-lived flash.

※ This article is based on publicly available materials cross-checked online to summarize company names, core businesses, and market positions, and some evaluations reflect the author’s own views. It is not intended as a direct basis for investment decisions.

Written: July 2026. Ealexandro