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LS Electric and Hyosung Heavy Industries Actively Entering Japanese ESS Market

Renewable energy growing rapidly by 35% annually
Expanding business into construction and operation

Domestic power-equipment manufacturers have set out to target the Japanese energy storage system (ESS) market, where power demand driven by artificial intelligence (AI) is increasing and renewable energy generation is expanding. They are broadening their scope beyond simple equipment supply to provide comprehensive solutions, including engineering, procurement, and construction (EPC) and operation and maintenance (O&M).

According to global market research firm Grand View Research, the Japanese ESS market, valued at approximately USD 13.4 billion (KRW 20.215 trillion) in 2025, is projected to grow at an average annual rate of 34.9 percent until 2030.
As the local market expands, domestic companies are also accelerating their entry into the Japanese market, LS Electric, which built the Hokkaido ‘Chitose Solar Power Plant’ in 2017, Japan’s first renewable energy power plant integrating solar power and ESS, constructed grid-connected ESS power plants in Kyushu in 2022 and in Watari-gun, Miyagi Prefecture in 2025. Grid-connected ESS power plants are a method of storing electricity generated from renewable-energy sources by connecting them to the power grid and supplying power when needed.
In addition, LS Electric is building a grid-connected energy storage system (ESS) plant, featuring a 2MW battery output and an 8MWh capacity, in Ichihara City, Chiba Prefecture, Japan. This project is LS Electric’s first direct investment and operation in Japan, and the company plans to expand its scope to cover the entire ESS business cycle, from investment and operation to power trading.
Hyosung Heavy Industries entered the Japanese market last February by securing a 48.5MW, 228MWh ultra-high voltage ESS EPC project in the Shiranuka region of Hokkaido. In addition, having signed an ESS EPC project contract worth approximately KRW 11 billion with a local energy developer last month, the company will construct 40MWh high-voltage ESSs in five locations, namely, Oita, Kumamoto, Yamaguchi, Okayama and Mie.

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LS Electric Expands U.S. Plant to Meet Higher Demand for Power Grid

HD Hyundai and Hyosung Heavy Industries are also taking a step forward

LS Electric is making an additional investment in its high-voltage distribution board plant in Enoch, Utah, USA. Korean power equipment companies are rapidly increasing their exports and local production in the United States.
According to an industry source, LS Electric recently signed a contract with Utah to invest an additional KRW 200 billion in its high-voltage power distribution board plant in Enoch.
Its goal is to increase the current operating capacity of KRW 50 billion, to up to KRW 150 billion and expand the factory site from approximately 13,223m2 to about 79,338m2. It aims to start construction for expansion within the first half of the year.
LS Electric plans to increase the yield and quality of its plant to the level of its plant in Cheongju, the largest in Korea. Utah is expected to offer ‘Rural Economic Development Tax Increment Financing (REDTIF)’ benefits for this investment.
The reason for the factory expansion is the demand from U.S. big tech companies for high-voltage distribution boards for AI data centers.

In response, domestic power equipment companies, including LS Electric, are continuously increasing their investments in the region. HD Hyundai Electric intends to construct a second plant in Alabama, while Hyosung Heavy Industries plans to expand its ultra-high voltage transformer plant in Memphis, Tennessee, to the largest in the United States.

Due to the overwhelming demand for power equipment in the U.S. market, not only local production but also exports are increasing. According to the Ministry of Trade, Industry and Energy, exports of electrical equipment, including voltage regulators, cables, and circuit breakers, totaled USD 16.7 billion last year, a 7% increase from USD 15.6 billion in 2024. Exports are expected to reach USD 17.7 billion this year, a 6% increase from the previous year.

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LS Electric and Hyosung

LS Electric Expands U.S. Plant to Meet Higher Demand for Power Grid

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