# Korean cell makers repurpose US plant lines for grid storage *LG Energy Solution, Samsung SDI and SK On are redirecting underutilized automotive capacity as US grid demand surges and Chinese cell tariffs hit.* **Published:** November 9, 2026 **By:** Seung-min Park **Section:** Batteries & Electric Vehicles — South Korea **Format:** Why It Matters **Confidence:** medium **Source:** https://eastasiabrief.com/batteries-ev/korean-cell-makers-repurpose-us-plant-lines-grid-storage-1268 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - LG Energy Solution and Samsung SDI booked over 220 GWh of US grid storage backlogs - Line conversions in Tennessee and Indiana shift idle EV cleanrooms to LFP storage cells - US Treasury reviews storage domestic content rules for tax credits in early 2027 ![A technician in protective gear monitors robotic arms assembling battery systems inside a modern manufacturing facility. (AI-generated image)](https://eastasiabrief.com/media/2026-11-09-d533751ff197.webp) *A technician in protective gear monitors robotic arms assembling battery systems inside a modern manufacturing facility. (AI-generated image)* South Korea's three major battery makers accelerated equipment conversions across their North American manufacturing plants on Nov. 9, 2026, redirecting idle electric vehicle capacity to supply utility-scale energy storage systems. The operational shift addresses an immediate imbalance in North American clean energy demand. While electric car adoption slowed, U.S. power grid operators and artificial intelligence data centers expanded stationary battery procurement. LG Energy Solution targets 50 gigawatt-hours of energy storage cell capacity in North America by the end of 2026. That regional footprint accounts for 83% of the company's 60 gigawatt-hour global stationary storage target. The manufacturer plans to expand its North American storage capacity beyond 70 gigawatt-hours by end-2027, the company said in its third-quarter financial presentation. Its cumulative stationary storage order backlog reached 160 gigawatt-hours. Surging storage shipments lifted third-quarter performance, generating 9.6 trillion won ($7.0 billion) in consolidated revenue and 756 billion won in operating profit. That revenue included 416.9 billion won in U.S. manufacturing tax credits. In September 2026, LG Energy Solution qualified its containerized battery energy storage systems for Nvidia's AI factory reference architecture. The company also secured its first direct-supply behind-the-meter storage contract with a major U.S. technology firm. LG Energy Solution and General Motors allocated $70 million in March 2026 to convert equipment at their joint venture plant in Spring Hill, Tennessee. The facility began commercial runs of lithium iron phosphate cells during the second quarter. The company also acquired Stellantis's 49% stake in their NextStar Energy venture in February 2026. LG Energy Solution turned the Canadian plant into a wholly owned base dedicated to grid energy storage manufacturing. Earlier in June 2025, LG Energy Solution completed the conversion of an electric vehicle line in Holland, Michigan. That plant produces long-cell pouch lithium iron phosphate batteries for American grid developers. Rising Section 301 tariffs on Chinese battery cells accelerated utility demand for domestic output. American developers moved procurement away from Chinese vendors to comply with foreign entity restrictions and qualify for federal tax credits. Samsung SDI responded by commercializing lithium iron phosphate cells at its StarPlus Energy joint venture in Kokomo, Indiana. The venture with Stellantis began commercial cell production in early October 2026, the company said. Initial cell deliveries left the Indiana factory in mid-October 2026. Samsung SDI will deliver its first complete Samsung Battery Box 2.0 container units from those lines in December 2026. Samsung SDI secured more than 60 gigawatt-hours in U.S. grid storage orders during 2026. Those contracts booked 100% of available capacity at the Indiana joint plant and its domestic Ulsan lines through 2028. In March 2026, Samsung SDI signed a 1.5 trillion won ($1.1 billion) four-year contract with an American energy company. That deal followed a 2 trillion won supply agreement concluded with a U.S. utility infrastructure operator in December 2025. Storage demand drove Samsung SDI's third-quarter battery operating profit to 361.9 billion won, recovering from an operating loss a year earlier. Battery revenue reached 4.41 trillion won, up 55.3% year on year. The company is converting two additional automotive lines in Indiana to stationary energy storage cells. Those converted lines will enter service sequentially starting in the first half of 2027, Samsung SDI said. To secure non-Chinese raw materials, Samsung SDI signed a 1.6 trillion won ($1.2 billion) supply contract with L&F in March 2026. L&F will provide cathode active materials for the Indiana lines over three years. SK On also initiated a phased conversion program across its manufacturing footprint. The company is retooling selected electric car battery lines at its Seosan complex in South Korea and its factory in Commerce, Georgia. In August 2026, SK On signed a 9 gigawatt-hour supply agreement with U.S.-based NeoVolta Power. The contract runs from 2027 through 2031, providing lithium iron phosphate cells for residential and commercial storage systems. The transition allows Korean producers to lift manufacturing utilization rates that dropped during the automotive slowdown. Converting existing cleanrooms and dry rooms avoids the multi-year permitting delays required for greenfield battery construction. Federal tax incentives under Section 45X provide $35 per kilowatt-hour for domestically produced battery cells. That subsidy offsets the higher capital expenditure required to reconfigure precision pouch and prismatic assembly equipment. SK On has not published the capital expenditure figures for converting its Georgia electric vehicle lines to energy storage cells. The company has also not disclosed the exact production capacity assigned to the NeoVolta supply contract. The U.S. Department of the Treasury will review domestic content guidance for clean energy storage projects in early 2027. That determination will establish final procurement quotas for grid developers claiming full investment tax credits. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | US EV battery line conversion to grid storage | LG Energy Solution targets 50 GWh US storage capacity, Samsung SDI books 100% Indiana lines through 2028 | Section 301 tariffs reduce Chinese grid battery cell share across US utility tenders | Equipment makers see retrofitting orders for pouch and prismatic assembly tools | US utility storage deployment accelerates with localized non-FEOC battery cells | ## In this story - **Companies:** LG Energy Solution, Samsung SDI, SK On - **Tickers:** 373220.KS, 006400.KS - **Exposed:** General Motors, Stellantis, NeoVolta Power - **Policy:** Tariffs, Tax Credits - **Impact:** Capex, Supply Chain, Pricing ## Primary sources 1. einfomax.co.kr 2. lgensol.com 3. ceoscoredaily.com 4. chosun.com 5. popcornnews.net --- Cite as: East Asia Brief, "Korean cell makers repurpose US plant lines for grid storage," November 9, 2026. https://eastasiabrief.com/batteries-ev/korean-cell-makers-repurpose-us-plant-lines-grid-storage-1268