LG Energy Solution ESS Backlog Hits 160 GWh; NA Volume Committed to 2028

LG Energy Solution (LGES) said on Nov. 3 that its energy storage system (ESS) order backlog stood at about 160 gigawatt-hours (GWh) at the end of the third quarter, and that most of its North American volume through 2028 is already committed.

The company made the statements on its third-quarter earnings call, according to the full transcript published by TheElec. Several headlines called North American output "sold out", but LGES's own wording was narrower: based on currently planned capacity, most available volume through 2028 is committed, and it is now discussing volumes beyond that period. Seoul Economic Daily reported the same quote and estimated the 160 GWh backlog at 30 trillion to 40 trillion won, an outside estimate rather than a company figure.

Who Is Still Buying

LGES named three groups in talks: existing power-grid and utility customers, AI data center operators that want battery capacity through those customers, and hyperscalers that want to buy battery energy storage systems (BESS) directly for behind-the-meter use, meaning storage installed on the customer's side of the grid connection. The company said expected demand exceeds what it can currently supply, so it will allocate future capacity to projects of strategic importance.

For data center builders, this is the practical signal. Storage tied to AI campuses now competes for cells with utility projects, and the supplier says it is rationing. LGES said it will raise the share of AI data center and system-integrator projects in its ESS mix, which it expects to help profitability. It also said ramping several ESS sites at once this year was not smooth and that margin gains have been slower than the market expected.

Capacity Against the Backlog

LGES expects more than 50 GWh of North American ESS capacity by the end of 2026 and more than 70 GWh by the end of 2027, including new prismatic cell lines, TheElec and Seoul Economic Daily both reported. The company did not say how much of the 160 GWh is North American, what is delivered when, or how many GWh each year of capacity covers, so the backlog and the capacity figures cannot be divided into a delivery schedule. The company also plans to add pack and LINK system capacity in the fourth quarter.

LGES said local-content policy is driving demand for locally made cells. It said the share of prohibited-foreign-entity (PFE) material allowed in direct material costs for US production credits falls from 40% this year to 35% or less next year. It said it has sourcing plans for each material and is adding non-PFE suppliers, a thread that links to the L&F LFP cathode contract for 2028 to 2031 reported on Nov. 3 and the 720,000-ton materials MOU with POSCO Future M reported on Oct. 30.

The Revenue Target

LGES also raised its 2026 revenue growth target on Nov. 3, alongside the quarterly results that Voltgrid covered earlier. TheElec reported it now expects 35% to 40% growth including North American production subsidies, against 10% to 20% in January. TheElec calculated that implies about 32 trillion to 33 trillion won of annual revenue.

What is not confirmed yet

LGES has not named the big tech customer behind its first direct BESS supply agreement, and has not split the 160 GWh by region, customer type or delivery year. It has not said what price the backlog carries. The Oct. 27 MOU with Energix, aiming at 2 GWh of storage over 24 months, is non-binding, as Voltgrid reported. Watch for orders beyond 2028, where the company said it expects order momentum to continue in the fourth quarter.