Secondary battery market in 2026, where is it now?

As the electric vehicle chasm (slowdown in demand) continues, all three Korean battery companies recorded operating losses in the first quarter of 2026. However, the market's attention is already shifting to the next phase.

The key keywords are ESS (Energy Storage System) and solid-state battery. Daishin Securities predicted that global data center electricity demand will rapidly increase from 420TWh in 2024 to 940TWh in 2030, and the expansion of AI data centers is driving explosive growth in the ESS market. The US policy of reducing dependence on Chinese batteries is also acting as a long-term positive factor for K Battery.

Top 5 secondary battery-related stocks

1️⃣ LG Energy Solution (373220)

No. 1 in battery cells in Korea and has the largest production capacity in North America. ESS shipments are expected to surpass EV by 2026, and they will benefit the most from the IRA tax credit. We also began supplying Tesla and BMW with the mass production of the 46 series (4680, 4695, 46120).

Investment points: AMPC directly reflected, North American ESS CAPA expanded to 30GWh by year-end, operating profit expected to rebound approximately 5 times in 2027

2️⃣ Samsung SDI (006400)

Rectangular battery powerhouse. ESS has a structure that stacks cells in multiple layers, so the square shape is advantageous, and this advantage is shining in 2026. From the beginning of this year to April, the stock price rose approximately 100%, recording a 6x return on LG Energy Solution.

Investment points: Signed two trillion-unit supply contracts for ESS LFP in North America, target for all-solid-state mass production in 2027, and solid finances with retained earnings of KRW 12.8 trillion

3️⃣ Ecopro BM (247540)

High Nickel cathode material global top tier. By unveiling the all-solid-state battery material development roadmap at InterBattery 2026, we are also strengthening our position in the next-generation materials field.

Investment points: High nickel cathode material market share, visualization of all-solid material roadmap, holding structure of parent company EcoPro

4️⃣ L&F (066970)

The first company in Korea to announce mass production of 3rd generation LFP anode materials. It stands out as a partner in securing LFP CAPA for Samsung SDI in advance, and is mentioned as a direct beneficiary of shortage benefits of LFP cathode materials for ESS.

Investment points: Benefit from non-Chinese LFP cathode material shortage, development of ultra-high density LFP, direct exposure to ESS

5️⃣ POSCO Future M (003670)

The only domestic company that possesses both anode and cathode materials. We are collaborating with Factorial of the United States to commercialize all-solid-state battery materials, and aim to supply in tons by the end of 2026 and commercialize in 2028.

Investment points: Simultaneous ownership of anode and cathode materials, self-procurement of precursors, development of new all-solid + LFP process

Risks to check when investing

Continuing short-term deficits — All three companies are expected to see losses in 2026, with a full-fledged recovery expected in 2027
IRA/AMPC policy changes — Need to keep an eye on policy direction after the U.S. midterm elections
Uncertainty about when EV demand will recover — Global EV sales expected to decline by 16% in 2026 compared to the previous year
Thematic short-term volatility — especially small and medium-cap material stocks, which fall sharply on the news