Neuro-Trend
July Trends – The Expansion of AI Data Centers, Can K-Batteries Rebound with ESS Batteries? (ESS Market / AI6 / AI Data Centers)
LG Energy Solution and SK On Take on China’s LFP in the ESS Market
As the rapid expansion of AI data centers drives a surge in ESS demand, LG Energy Solution and SK On are accelerating their efforts to target the North American market. SK On has begun full-scale local production of LFP batteries in the U.S. and recently strengthened its supply chain by signing a supply agreement with cathode material company L&F. LG Energy Solution has also started mass production of LFP batteries for ESS at its Michigan plant. Although these companies previously lost ground to Chinese LFP in the EV battery market, they are now expected to make a strategic move to regain leadership in the ESS market.
From “Rivals” to “Allies”… Can LG and SK Overcome the Chasm?
A new atmosphere of cooperation is emerging between LG and SK, long-time rivals in the battery industry. LG Energy Solution is reportedly in discussions to adopt copper foil from SK Nexilis for its new U.S. plant scheduled to begin operations in the second half of the year. This move is interpreted as a result of the Trump administration’s protectionist trade stance and policies encouraging domestic production, making cooperation between Korean companies in the U.S. market inevitable. Industry observers note that if this collaboration materializes, the relationship between the two companies could evolve beyond past conflicts into a strategic alliance.
A Warning Sign for China’s Manufacturing? PMI Hits a 6-Month Low
China’s manufacturing sector is struggling to rebound. The manufacturing PMI for July came in at 49.3, marking the lowest level in six months and remaining below the benchmark (50) for four consecutive months. Despite achieving a record trade surplus in the first half of the year, multiple risks—including declining port traffic and instability in the labor market—are expected to continue affecting the second half. This is seen as a result of both climate-related disruptions such as heatwaves, heavy rain, and flooding, as well as structural challenges like weak domestic demand and reduced consumption. With deflationary pressure also intensifying, concerns over an economic slowdown are growing, and uncertainty in China’s manufacturing sector is expected to impact the global economy.
Samsung Partners with Tesla Through a ₩23 Trillion AI Chip Deal
Samsung Electronics has signed a deal with Tesla to supply next-generation AI chips, “AI6,” worth approximately ₩23 trillion. These chips are expected to be applied not only to Tesla’s Full Self-Driving (FSD) technology but also to its humanoid robot “Optimus,” making them key components in future mobility and robotics industries. This agreement marks the largest foundry order in Samsung’s history, further strengthening its position in the global semiconductor market. Following the announcement, both companies’ stock prices rose, reflecting strong market expectations. Tesla is accelerating the development of its own AI ecosystem based on these chips, and further expansion of collaboration between the two companies is anticipated.
SK Chairman Chey Tae-won: “Without AI Technology, Korea Could Be Eliminated Within 10 Years”
SK Group Chairman Chey Tae-won diagnosed a crisis in Korea’s manufacturing sector and emphasized the need for industrial innovation through AI. He warned that Korea’s manufacturing industry has already entered a “lost decade” and that without innovation leveraging AI technology, many companies could be forced out within the next 10 years. He also proposed collaboration with Japan as a strategy to strengthen AI competitiveness, explaining that combining Korea’s manufacturing capabilities with Japan’s data technologies could enhance global competitiveness. His remarks are expected to provide strategic direction for the future of Korea’s manufacturing industry and highlight the importance of AI once again.
Ulsan Becomes a Future Industry Hub with an AI Data Center
Ulsan has successfully attracted an AI data center project worth ₩1.5 trillion to foster its AI industry. On July 30, the Ministry of Trade, Industry and Energy finalized the revised designation of Ulsan’s Opportunity Development Zone. The project operator has been changed to SK Broadband, and the project scale has significantly expanded from 40MW to 100MW. Ulsan plans to accelerate ecosystem development by attracting related industries and supporting startups centered around the AI data center, generating positive ripple effects across the regional economy. This project is expected to bring large-scale investment and job creation, serving as a key milestone in strengthening Ulsan’s advanced industrial ecosystem.
