[Edaily Reporter JAEMIN SONG ] LG Energy Solution has decided not to participate in the third competitive bidding round for the Energy Storage System (ESS) Central Contract Market. This is a strategic decision to focus on the stable execution of existing projects and securing mid- to long-term competitiveness rather than expanding orders in the short term through price competition.

LG Energy Solution announced in a statement on the 5th, “We did not participate in the third round of competitive bidding for the Central Contract Market.”

The company explained, “This is a strategic decision based on ‘selection and concentration’ to enhance operational efficiency and medium- to long-term competitiveness within our limited resources and workforce, rather than securing short-term volume through price competition.”

Accordingly, LG Energy Solution plans to prioritize the seamless execution of existing projects—including the volume secured through the first and second Central Contract Market rounds and the government’s “Support Project for the Construction of AI-Powered Distribution Network ESS”—without any delays.

At the Ochang Energy Plant, its domestic production hub, the company is accelerating the development and commercialization of next-generation products, including sodium-ion batteries. The plan is to concentrate resources on executing existing projects and securing future technological competitiveness rather than expanding new orders.

At the same time, the company is expanding its ESS business scope from the traditional supply of battery cells to energy solutions such as system integration (SI), AI-based operations, and virtual power plants (VPPs). This strategy involves broadening the business scope beyond simple battery supply to encompass everything from ESS design to operation and maintenance.

LG Energy Solution has been operating distribution grid-connected ESS and VPP systems on Jeju Island since 2024. In July of this year, the company was selected as the operator for the government’s “Support Project for the Construction of AI-Enabled Distribution Grid ESS” and plans to operate a 140-megawatt-hour (MWh) ESS to be built in the Honam region for 20 years starting in 2027.

In North America, the company provides integrated solutions—from design to operation and maintenance—through Vertech, its ESS system integration subsidiary. The plan is to strengthen business competitiveness by combining battery manufacturing capabilities with operational technology.

An LG Energy Solution official stated, “Going forward, we will continue to provide differentiated solutions that enable customers to operate ESS more safely and efficiently by combining our competitive battery cells with Battery Management Systems (BMS) and AI-based operational technologies.”