South Korea's second ESS tender nears as Samsung SDI leads and rivals press safety pitch

 [Photo=Getty Images]SEOUL, January 10 (AJP) - With just three days left until the proposal deadline, South Korea’s major battery makers are stepping up efforts to win contracts in the second round of the country’s centralized energy storage system (ESS) tender, highlighting safety and technology as key selling points.

Industry sources said on Friday that LG Energy Solution, Samsung SDI and SK On will all submit bids for the tender, with proposals due by Jan. 12 and final selections expected in February.

The second ESS project totals 540 megawatts — 500 MW on the mainland and 40 MW on Jeju — with total costs estimated at about 1 trillion won. The facilities are scheduled for completion by December 2027.

In the first round, Samsung SDI secured 76 percent of the total volume, while LG Energy Solution took the remainder. SK On failed to win any contracts. Industry officials attributed the outcome in part to Samsung SDI’s strong score in industrial contributions, including domestic production.

Fire safety has emerged as a decisive factor in the second tender. The weighting for price evaluation has been lowered to 50 percent from 60 percent, while non-price criteria now account for 50 percent, up from 40 percent. Within that category, points allocated to fire safety were raised to 11 from six.

The change is seen as favoring Samsung SDI, which has long emphasized battery safety. The company is promoting its ESS fire-prevention technology and domestic manufacturing base. Its nickel-cobalt-aluminum (NCA) prismatic batteries produced at its Ulsan plant are structurally durable and designed to limit the spread of fires, giving them an edge in safety assessments.

Samsung SDI has also highlighted its integrated ESS solution, the Samsung Battery Box (SBB), which recently won a Korea Technology Award for advances in fire safety and cost-reduction technology. The SBB integrates batteries and safety systems into a single 20-foot container.

LG Energy Solution, meanwhile, is pitching the safety of its lithium iron phosphate (LFP) batteries, which are known for strong heat resistance and for releasing little oxygen — a key factor in reducing fire and explosion risks.

The company said it is the only South Korean battery maker with a large-scale LFP mass-production system and is ramping up domestic output at its Ochang Energy Plant in North Chungcheong Province, a move expected to bolster its score for industrial contribution.

SK On, which failed to secure contracts in the first tender, is under pressure to gain ground this time. The company is moving to establish an LFP production line for ESS use, planning to convert part of its electric-vehicle ternary battery facility in Seosan, South Chungcheong Province, to serve the ESS market.

Han Se-kyung, a professor of electrical engineering at Kyungpook National University, said the second centralized ESS tender is likely to split volumes among established players rather than allow one company to dominate.

“As the weight for price evaluation falls and non-price criteria rise, safety will become a more important factor,” Han said.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Lee nakyeong 기자 nakk@ajunews.com