South Korean battery makers are poised to benefit from a multibillion-dollar gas-fired power complex in Texas, which highlights growing demand for reliable electricity to power artificial intelligence data centers. The project, announced by US President Donald Trump, is part of a $350 billion strategic investment package agreed between Seoul and Washington last year.
The $22.3 billion combined-cycle gas-fired power complex in Encinal, Texas, is designed to supply electricity to nearby AI data centers. Korean firms are expected to seek contracts related to equipment supply, engineering, construction, and long-term maintenance for the project.
Powering the AI Boom
The Texas project illustrates that stable electricity is required to back energy-intensive AI infrastructure. Battery storage systems are being paired with traditional generation to stabilize the grid and handle shifts in demand.
AI data centers need massive groups of graphics cards, which can change power use quickly. Even short power outages can halt operations, requiring systems that can react almost immediately.
ESS helps manage these shifts by holding electricity when demand drops and releasing it during peaks, working alongside gas turbines and reducing strain on the network.
US Energy Storage Industry
The American energy storage sector aims for 1 terawatt-hour of capacity by 2032. This shift creates a new growth area for South Korean battery makers seeking to move beyond vehicles.
A report from the US Energy Storage Coalition indicates the target needs an average yearly increase of about 25 percent. This would mean raising installed power capacity by over 300 percent and energy storage by more than 500 percent.
Korean Battery Makers
South Korea‘s top three battery companies, LG Energy Solution, Samsung SDI, and SK On, are intensifying their efforts in the North American energy storage market. They are repurposing EV lines for storage and expanding local output.
LG Energy Solution has started production in its Lansing, Michigan, plant, bringing its ESS sites in the US and Canada to five. The firm targets over 50 gigawatt-hours of annual LFP battery production for storage in North America by the end of this year.
Samsung SDI is also growing its storage capacity in the US by modifying production lines at its StarPlus Energy joint venture in Indiana for ESS. Mass production of LFP batteries there is scheduled to begin in the fourth quarter.
SK On is adapting part of its EV production lines in Georgia to make LFP batteries for storage. It signed a five-year deal with NeoVolta Power to supply 9 gigawatt-hours of LFP cells from 2027 to 2031.
The US storage boom provides an opportunity for Korea’s battery sector to diversify income as EV demand slows, while utilizing facilities already established in North America. As the sector expands, Korean firms are well-positioned to gain a large market share.
They are taking steps to increase their production capacity and expand their presence in the US market. This move is expected to help them secure a significant share of the growing energy storage market in the US.
