LG Energy Eyes Global Battery Market Growing 20%+ Annually Starting in 2025

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HOUSTON, TEXAS (Editors at Energy Analytics Institute, 24.Jan.2025) — LG Energy Solution expects the global battery market, encompassing the EV, ESS, and IT sectors, to grow by over 20% annually starting in 2025.

LG Energy expects its first-mover advantages in the North American battery market to continue to expand, driven by the growing trend of protectionism, the company said 24 Jan. 2025 in an official statement.

At the same time, LG Energy Solution said increasing volatility of green policies in major countries is expected to decelerate the growth of EV demand in the short-term.

In the ESS space, LG Energy Solution eyes an increasing need for regional renewable energy infrastructure owing to the emerging importance of energy security. 

LG Energy also expects power demand to surge on the back of the expansion of artificial intelligence or AI-driven data centers and forecasts securing local battery supplies will become ever more critical in response to the higher tariffs on batteries from China set to take effect in 2026.

Key business initiatives in 2025

Over the short-term, LG Energy Solution will focus on proactively responding to market volatilities. The company looks to enhance its financial stability by adjusting the timeline of investment for the construction of new facilities and prioritizing the execution of critical investments. 

At the same time, the company will look to maximize the utilization of its existing capacity by processing new orders for LFP and high-voltage mid-nickel batteries on idle production lines within existing facilities. LG Energy Solution company will also enhance its operational compatibility across production facilities, namely by diversifying form factors within each facility and converting production lines between EV and ESS batteries to proactively respond to local customer needs.

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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.

ENERGY ANALYTICS INSTITUTE (EAI) https://energy-analytics-institute.org

Energy Analytics Institute (EAI), formerly LatinPetroleum.com, is a Houston-established private organization with a satellite presence in Calgary, Mexico City and Venezuela where it operates under Editores LatinPetroleum SA. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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