ESS batteries take center stage ahead of US removal of EV tax credit

An illustration of LG Energy Solution's (LGES) exhibition booth for the Renewable Energy Plus 2025 event in Las Vegas / Courtesy of LGES

Korean battery manufacturers are ramping up their focus on energy storage systems (ESS) as the United States moves to end subsidies for electric vehicle (EV) purchases.

In July, U.S. President Donald Trump signed the One Big Beautiful Bill Act into law, announcing the planned elimination of up to $7,500 in tax credits for EV purchases after Sept. 30, seven years ahead of the original expiration date.

Bracing for a longer-than-expected slowdown in U.S. demand for EV batteries, the top three battery makers here are broadening their foothold in the North American ESS market.

LG Energy Solution (LGES) and Samsung SDI will attend the Renewable Energy Plus 2025 event.

Both companies plan to showcase their newest ESS technologies at North America's largest renewable energy exhibition, scheduled for Sept. 8-11 in Las Vegas.

LGES, the first battery manufacturer to mass-produce lithium iron phosphate (LFP) batteries for ESS at a U.S. facility, announced Sunday it will display its prismatic LFP battery. This marks the first public showing of the battery model known for high resistance to external shocks.

The company has previously produced only pouch-type LFP batteries for ESS at its U.S. plant. Pouch-type products are lighter than prismatic models and offer greater heat resistance.

“Building on our capacity to manufacture batteries in various form factors, we will continue to set new records as the first and the best in the North American market,” said Kim Hyung-sik, head of the ESS battery division at LGES.

An illustration of Samsung SDI's exhibition booth for the Renewable Energy Plus 2025 event in Las Vegas / Courtesy of Samsung SDI

Samsung SDI will debut its latest ESS products: Samsung Battery Box (SBB) 1.7 and 2.0. SBB offers an all-in-one solution with cells, modules and racks integrated inside a 20-foot container for instant connection to power grids.

Based on ternary batteries made with nickel cobalt aluminum, the SBB 1.7 delivers about 17 percent higher energy density than the previous SBB 1.5.

According to Samsung SDI, SBB 2.0 uses LFP cells and achieves top-tier longevity with proprietary design innovations and advanced lifespan prediction algorithms. Both SBB 1.7 and SBB 2.0 feature Enhanced Direct Injection (EDI) technology, boosting safety and reliability.

"We will unveil locally tailored ESS battery products and innovative technologies aimed at the rapidly growing U.S. market," a Samsung SDI official said. "With high-performance and high-efficiency ESS batteries, we aim to accelerate our expansion in the U.S. market."

SK On is also considering switching part of its EV battery lines at its U.S. plant in Georgia to ESS battery production.

Once SK On raises its ESS output in the U.S., the company is expected to benefit from the expansion of the U.S. ESS market, especially with the Trump administration hiking tariffs on Chinese batteries.

According to market tracker Mordor Intelligence, the size of the U.S. ESS market is estimated at $3.68 billion in 2025 and projected to reach $5.09 billion by 2030, growing annually at 6.7 percent. The U.S. tariff rate on Chinese ESS batteries will climb to 58.4 percent in 2026, up from 40.9 percent this year.

"The U.S. will continue to offer tax credits for ESS, so the U.S. demand for ESS will remain solid," said Hwang Kyung-in, associate research fellow at the Korea Institute for Industrial Economics & Trade.

"As demand for EV batteries is likely to decline due to the elimination of subsidies for EV purchases, battery makers should consider switching their U.S. battery production lines to ESS battery production or expanding investments in ESS batteries."