[Edaily Reporter Kim Kyeo-Re ] LG Energy Solution announced that it is in discussions with the U.S. government and major defense contractors to supply batteries for unmanned weapon systems, including drones. This move is seen as an effort to expand its business scope into the defense sector—following its foray into energy storage systems (ESS)—in response to slowing demand for electric vehicles.

Bob Lee, president of LG Energy Solution’s North American subsidiary, revealed in an interview with Bloomberg on the 18th (local time) that LG Energy Solution has received inquiries regarding defense business opportunities from multiple U.S. companies and government agencies.
Discussions are still in the early stages. However, if these lead to actual supply contracts, it would mark a significant shift in LG Corp.’s business strategy, which has traditionally avoided the defense sector.
President Lee said, “Just as consumer goods companies decide not to get into the alcohol or tobacco business, LG Corp.’s perspective on the defense sector was similar,” adding, “However, we now see clear growth potential and business opportunities.”
These discussions are taking place as the Donald Trump administration works to replenish military supplies depleted during the Iran and Ukraine conflicts and strengthen domestic supply chains for strategic technologies such as drones. The U.S. government recently decided to impose tariffs of up to 100% on imported drones and related components.
As demand for electric vehicles in North America has slowed compared to initial expectations, LG Energy Solution is realigning its local operations to focus on energy storage systems (ESS). Currently, ESS accounts for more than half of its U.S. business, while the company is focusing on electric vehicle batteries in regions outside the U.S.
LG Corp. has converted five of the eight factories it built in North America for electric vehicles to produce ESS. This move is based on the assessment that demand for ESS is growing rapidly due to the construction of artificial intelligence (AI) data centers and expanded investment in power infrastructure. LG Energy Solution expects its ESS business to turn a profit by the end of this year.
LG Corp. also opened its battery plant in Lansing, Michigan, built in partnership with General Motors (GM), on the same day. According to Bloomberg, the Lansing plant is scheduled to supply lithium iron phosphate (LFP) battery cells worth approximately $4.3 billion for Tesla’s Megapack ESS starting in 2027. It will also produce nickel-based battery cells for Toyota vehicles.
LG Corp. also called for stricter regulations targeting Chinese companies in the U.S. ESS market. President Lee stated that he asked U.S. Secretary of the Interior Doug Burgum, who attended the Lansing plant’s opening ceremony, to consider measures to restrict Chinese companies’ access to the ESS market. President Lee reported that Secretary Burgum agreed with the need to restrict Chinese companies, noting that “it is very important for the U.S. to have a more independent and self-reliant supply chain.”