LG Energy Solution Skips 1,180 MW Korea ESS Tender, Shuns Price War

LG Energy Solution (LGES) did not bid in South Korea's third ESS central contract market, a 1,180 MW energy storage tender, the company said on Nov. 5, leaving Samsung SDI and SK On as the expected contenders.

LGES described the move in a statement carried by Financial News as a choice of "selection and focus" within limited resources and staff, rather than winning short-term volume through price competition. It said it will decide on later rounds by weighing market conditions and its own circumstances, and rejected the reading that it is cutting domestic investment. The Korea Power Exchange (KPX) closes receipt of final documents on Nov. 11 and is due to name preferred bidders this month, according to The Elec, and winners must finish building by February 2029.

Price is the backdrop. The Elec and Financial News, citing industry sources, report that average bid prices fell from the 30-won range per kilowatt-hour in the first round to the 20-won range in the second. Neither states the basis of those figures, so they should not be read as a cell or system price. A Financial News source in the industry said the first two rounds' prices look thin against what Korean makers earn on ESS sold in the US.

How the first two rounds were split

The tender is run by the Ministry of Climate, Energy and Environment and KPX, and winners operate their systems for 15 years as a grid resource, DigitalToday reported. In round 1, DigitalToday says, 563 MW was awarded: Samsung SDI took 427 MW and LGES 136 MW. In round 2, 565 MW was awarded: SK On took 284 MW, Samsung SDI 202 MW and LGES 79 MW. The Elec puts round 1 at 540 MW, so the split differs by outlet.

Across both rounds, The Elec gives shares of awarded volume of 56% for Samsung SDI, 25% for SK On and 19% for LGES. The third tender, 1,100 MW on the mainland and 80 MW on Jeju according to Seoul Economic Daily, is more than double the second round. Industry officials told the paper that bids probably came in slightly higher than before because the field is smaller. That is an expectation, not a result.

What LGES is chasing instead

Its stated priorities are delivering the round 1 and 2 volume and the government's AI-based distribution-grid ESS programme, a 140 MWh system in the Honam region due to operate from 2027 for 20 years, per DigitalToday. At its Ochang plant, Financial News reports, it is developing sodium-ion batteries and preparing tabless LFP 2170 cylindrical cell mass production for the first half of next year. It is also moving from cell supply toward system integration, AI-based operation and virtual power plants.

The decision follows LGES's Nov. 3 disclosure of an ESS order backlog of about 160 GWh, with most North American volume through 2028 already committed. Against that, a 20-won-range domestic round is a small, low-priced slice of its order book. Voltgrid also reported that SK On is converting EV lines to ESS, which makes the SK On and Samsung SDI contest the one to watch.

What is not confirmed yet

No bidder list or price for the third round is public. KPX has not named preferred bidders, and the reported volume split between mainland and Jeju, and the round 1 total, differ between Korean outlets. The won-per-kWh price basis is unstated. LGES said it would decide on later rounds case by case.