[Market Focus] ESS Demand Expected to Rise on Expanded AI Investment... Secondary Battery Stocks Rally

On October 17, stocks related to secondary batteries are showing strong performance. This is due to expectations of increased demand for energy storage systems (ESS) driven by expanded investments in artificial intelligence (AI).

As of 2:25 p.m. on this day, Ecopro is trading at 72,200 won, up 25.13% from the previous trading day. At the same time, Ecopro BM is up 13.50%, trading at 162,300 won.

The majority of secondary battery-related stocks are also on the rise. Cheonbo is up 21.02%, L&F is up 13.92%, Yulchon Chemical is up 12.08%, LG Chem is up 9.70%, Samsung SDI is up 8.26%, and LG Energy Solution is up 2.97%.

This trend appears to be driven by increased demand for ESS resulting from expanded AI investments, as well as growing expectations that the temporary stagnation in electric vehicle demand (the so-called "EV chasm") will be resolved, leading investor sentiment to focus on related stocks.

Lee Jaewon, a researcher at Shinhan Investment & Securities, stated, "The recent upward momentum is based on strong performance in the U.S. ESS market," adding, "In the case of LG Energy Solution, the company supplied 6 trillion won worth of ESS batteries to Tesla, which has been reflected in the secondary battery sector."

On this day, KB Securities also raised its target price for L&F from 110,000 won to 130,000 won. Lee Changmin, a researcher at KB Securities, explained, "As AI investments expand, the importance of ESS, which serves as power infrastructure, is increasing, and ESS demand is expected to surge, especially in North America," adding, "The benefit from this trend is expected to be the greatest."

According to British market research firm Rho Motion, electric vehicle sales in Europe last month reached 430,000 units, up 36% from the same month last year. In North America, electric vehicle sales last month totaled 220,000 units, a 66% increase from a year earlier. These figures include both battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs).

For the period from January to September this year, global electric vehicle sales reached 14.7 million units, up 26% from the same period last year. Sales increased in most regions, including China (9 million units, up 24%), Europe (3 million units, up 32%), and North America (1.5 million units, up 11%).