Korea's US investment triggers 2nd wave of orders for ESS, power gear makers

Korea’s planned power infrastructure investment in the United States could generate a second wave of orders for Korean battery and power equipment makers, as surging electricity consumption from artificial intelligence (AI) data centers drives demand for energy storage systems (ESS) and grid equipment. Last week, the Korean government announced its first U.S. strategic investment project, part of a $350 billion investment package. The project worth $22.3 billion is centered on building a natural gas-fired power plant in Encinal, Texas, to meet rising electricity demand from semiconductor plants and AI data centers. The project is also expected to create additional demand for equipment needed to store, distribute and stabilize power, enabling relevant system makers to attract more orders from the world’s largest economy. ESS is one of the largest pillar under the project. Korean battery makers — LG Energy Solution, Samsung SDI and SK On — identify ESS as their major revenue areas while the electric vehicle industry is stuck in a chasm. ESS can store electricity when demand is low