Batteries & Energy Storage

Batteries and energy storage cover two linked bets. One is the next chemistry, where solid-state cells promise more range and better safety for electric vehicles. The other is grid storage, the battery systems that hold electricity for later. This pillar starts with the Korean cell makers and materials suppliers that lead both ends of the theme.

Key takeaways
  • This theme covers two linked stories: the next generation of battery chemistry (led by solid-state cells) and battery energy storage systems (ESS) that store electricity for the grid.
  • ESS is the near-term cash story: BloombergNEF expects global storage capacity to reach roughly 2 TW (7.3 TWh) by 2035, about eight times the 2025 level, driven by renewables and AI data-center power demand.
  • The orders are already landing: LG Energy Solution's ESS backlog reached 140 GWh at the end of 2025 with a 90 GWh new-order target for 2026, plus a $4.3 billion LFP cell deal with Tesla signed in March 2026.
  • Solid-state batteries are the longer-dated prize: Korea's Samsung SDI targets mass production in 2027 and LG Energy Solution aims to commercialize all-solid-state EV cells by 2029, so the technology is still largely pre-revenue.
  • This pillar starts with the Korean cell makers and materials suppliers that lead both ends of the theme.

What does Batteries & Energy Storage cover?

It joins a technology story and a market story. The technology is the solid-state battery, a cell that swaps the liquid electrolyte for a solid one to pack in more energy and reduce fire risk. The market is the battery energy storage system, the container-scale batteries that store power for the grid. The same companies, Korea’s big cell makers, sit at the center of both, which is what makes this a single theme rather than two: today’s ESS cash flows fund tomorrow’s chemistry.

Why is energy storage growing so fast?

Grids built around solar and wind need something to smooth the gaps, and increasingly so do AI data centers that want reliable power around the clock. BloombergNEF expects global storage capacity to reach roughly 2 TW / 7.3 TWh by 2035, about eight times the 2025 level (BloombergNEF). The electricity demand behind that is real: the IEA projects data-center power use to roughly double from 485 TWh in 2025 to about 950 TWh in 2030, with AI-focused demand tripling (International Energy Agency).

Energy storage installations globally will keep gaining momentum over the next decade as other markets pick up pace.

— Isshu Kikuma, Senior Associate for Energy Storage, BloombergNEF

The United States shows what that looks like on the ground. The Energy Information Administration expected a record 18.2 GW of utility-scale battery storage to be added to the US grid in 2025, alongside 32.5 GW of new solar, the pairing that makes storage economics work (U.S. Energy Information Administration).

Where is the demand showing up in orders?

In contracts, and mostly Korean ones. LG Energy Solution’s ESS order backlog reached 140 GWh at the end of 2025, and the company is targeting another 90 GWh of new orders in 2026, much of it from US utilities (Energy-Storage.news). In March 2026 it signed a $4.3 billion deal to supply Tesla with LFP cells for Megapack storage systems (Energy-Storage.news). Storage, not EVs, is where the near-term cash is being booked.

When do solid-state batteries actually arrive?

Later than the headlines suggest, and it pays to be honest about that. Samsung SDI runs a solid-state pilot line, its 6,500-square-meter “S-Line” in Suwon, and targets mass production in 2027 at an energy density of 900 Wh/L, about 40% above its current prismatic cells (Samsung SDI; electrive). LG Energy Solution is on a slower path, aiming to commercialize graphite-based all-solid-state EV cells by 2029 and anode-free cells for robots by 2030 (Seoul Economic Daily). Those are targets, not shipments, and battery roadmaps slip. So the storage business is the near-term cash flow, while solid-state is the option on the next decade.

How do the Batteries & Energy Storage clusters fit together?

The hub of this pillar is the Solid-State Batteries & Energy Storage concept, and the securities around it form a supply chain with the two cell makers at the center. Samsung SDI and LG Energy Solution build the cells, for EVs today and solid-state tomorrow. Feeding them is a materials layer: L&F supplies high-nickel cathode material, ISU Specialty Chemical makes the solid-electrolyte inputs the all-solid-state cell depends on, and POSCO Future M, EcoPro Materials, and Lotte Energy Materials supply cathode, precursor, and copper-foil inputs. On the storage side sits an ESS hardware layer, with HanJung NCS, Shinsung ST, and LS Materials building the modules and components that go into grid installations. The solid-state battery and battery energy storage system glossary entries define the two technologies, and the cell makers also anchor the battery leg of the allied manufacturing theme.

Explore this theme

Which concepts explain this theme?

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How can investors access Batteries & Energy Storage?

The Solid-State Batteries & Energy Storage concept covers the Korean leaders, from Samsung SDI and LG Energy Solution to the materials suppliers around them. The Akros Korea Solid-State Battery ESS TOP2 Plus Index tracks the theme; there is no licensed tracking ETF yet, so listed exposure today means the individual names. As always, check fees, holdings, and risk before investing.

These references describe index-tracking relationships as a matter of fact and are not a recommendation to buy any product. Akros, as the index provider, may receive licensing fees from product sponsors. Review the product's prospectus before investing.

What are the risks of Batteries & Energy Storage?

Batteries are cyclical and price-competitive. Chinese makers dominate on cost, EV demand has been uneven, and a solid-state timeline that slips would hit the names that are valued on it. The order book is not guaranteed either: LG Energy Solution scrapped a $2.8 billion US supply contract in December 2025 (KED Global). Storage is healthier, but it depends on policy support and on grid-connection queues that move slowly. This is a long-horizon, volatile theme.

Frequently asked questions

What is the batteries and energy storage theme?

It groups two related investments: advanced battery chemistry, where solid-state batteries promise higher energy density and better safety, and battery energy storage systems that store electricity for the grid. The first is a long-dated technology bet; the second is already a fast-growing market.

How big is the energy-storage market?

BloombergNEF expects global energy-storage capacity to reach roughly 2 TW / 7.3 TWh by 2035, about eight times the 2025 level (BloombergNEF). Growth is driven by renewables that need firming and by AI data centers that need reliable power.

When will solid-state batteries reach mass production?

Most commercial timelines sit late in the decade. Samsung SDI targets mass production in 2027, and LG Energy Solution aims to commercialize all-solid-state EV cells by 2029 (electrive). These are targets, not shipments, so timelines can slip.

How fast is grid battery storage growing in the United States?

Fast enough to set records. The U.S. Energy Information Administration expected 18.2 GW of utility-scale battery storage to be added to the US grid in 2025, a record, alongside 32.5 GW of new utility-scale solar (EIA). Much of the Korean cell makers' ESS backlog is aimed at this market.

How can you invest in batteries and energy storage?

The Solid-State Batteries & Energy Storage concept covers the Korean cell makers and materials suppliers. The Akros Korea Solid-State Battery ESS TOP2 Plus Index tracks the theme; there is no licensed tracking ETF yet. Always check fees, holdings, and risk before investing.

Sources & references

  1. Global Energy Storage Boom: Three Things to Know · BloombergNEF, 2025-09-01
  2. Global electricity demand is set to grow strongly to 2030 · International Energy Agency, 2026-02-14
  3. Samsung SDI to start mass production of solid-state batteries in 2027 · electrive, 2024-03-05
  4. LG Energy Solution to Commercialize Solid-State EV Batteries by 2029 · Seoul Economic Daily, 2026-02-18
  5. Solar, battery storage to lead new U.S. generating capacity additions in 2025 · U.S. Energy Information Administration, 2025-02-24
  6. 900Wh/L All Solid Battery Becomes Reality · Samsung SDI, 2024-09-01
  7. LG Energy Solution targets 90GWh of battery orders in US energy storage market in 2026 · Energy-Storage.news, 2026-01-20
  8. LG Energy Solution's US$4.3 billion agreement with Tesla and LFP manufacturing with GM · Energy-Storage.news, 2026-03-18
  9. LG Energy scraps $2.8 bn US contract in 2nd supply cancellation in December · KED Global, 2025-12-26