Battery stocks rose together in early trading on the 14th as expectations grew for stronger demand for energy storage systems, or ESS, driven by the spread of artificial intelligence data centers. Buying spread across the sector as ESS emerged as a new growth driver for a battery industry that had struggled with a slowdown in the electric vehicle market.
Samsung SDI (006400.KS) was trading at 588,000 won, up 28,000 won, or 5.00%, from the previous session, according to the Korea Exchange. LG Energy Solution (373220.KS) rose 2.80% to 421,500 won, while L&F (066970.KQ) gained 8.51% to 118,600 won. EcoPro Materials (450080.KS) advanced 3.50% and EcoPro BM (247540.KQ) rose 0.97%.
Battery materials and components stocks also drew buying. Sangsin EDP (091580.KQ) jumped 7.54%, Pino (033790.KQ) rose 5.05%, Samwha Capacitor (001820.KS) gained 3.43% and Samwha Electric (009470.KS) added 2.08%. LS Materials (417200.KQ) surged 15.08%, the biggest gain in the electrical equipment sector.
Investors are focusing on the possibility that ESS will establish itself as a battery demand source complementing electric vehicles as AI data centers multiply. Daol Investment & Securities said annual ESS installations in the U.S. will rise to 70 gigawatt-hours next year from 51 GWh this year, before expanding to more than 110 GWh by 2030. Because data centers require a stable supply of vast amounts of electricity, demand for ESS installations could grow alongside grid reinforcement, the brokerage said.
Capacity expansion by Korean battery makers is also fueling expectations. LG Energy Solution plans to secure annual ESS production capacity of more than 50 GWh across five sites in North America. Samsung SDI is pushing to expand production of ESS batteries, centered on its plant in Indiana.
U.S. supply chain regulations could also work in favor of Korean companies, analysts said. Tighter rules on Chinese-made products are increasing the need to source non-Chinese batteries and materials.
"AI power demand is driving structural growth in the ESS market," said Yoo Ji-woong, an analyst at Daol Investment & Securities. "From next year, ESS growth will combine with a recovery in electric vehicle demand, and we expect earnings improvement in the battery sector to begin in earnest."
