The yet-to-be-revealed relationship with LG Energy Solution: Partners for the future of space and AI?
I am a staunch investor in KULR residing in South Korea, and I currently hold 15,000 shares.
Do you happen to remember the news regarding the collaboration with LG Energy Solution that CEO Mo posted on X last November?
Since I live in South Korea, I am very well aware of the scale of LG Energy Solution and its tremendous standing in the industry, but shareholders in the U.S. might not be familiar with it.
What kind of company is LG Energy Solution?
It is a global battery specialist company spun off from LG Chem in South Korea. It is a mega-player that consistently competes for the top 1 or 2 spots in the global electric vehicle (EV) battery market, excluding the Chinese market, and maintains a market share of approximately 9.7% based on total global margins (ranking 3rd globally as of Q1 2026). Furthermore, it is the company that receives the most direct benefits from U.S. Income Tax Reductions (IRAs). It operates multiple joint venture (JV) factories in the U.S. with global automakers such as GM, Honda, and Hyundai Motor, and recently, it has strengthened its large-scale energy storage system (ESS) battery production network within the U.S., planning to secure a production capacity of over 50 GWh in North America alone by the end of this year.
It also possesses the mass production capability for the next-generation '46 Series' cylindrical batteries adopted by Tesla.
It is a massive enterprise representing the nation, having once ranked second in market capitalization on the KOSPI, where major South Korean conglomerates are listed, following Samsung Electronics.
What is the connection with KULR?
While everyone may remember the news from last November as the first link, the connection between LG Energy Solution and KULR dates back to 2023. The first collaboration occurred during the process of supplying LG Energy Solution's cylindrical lithium-ion batteries to NASA. As part of a contract for an advanced automated battery cell inspection system with NASA, 10,000 of LG Energy Solution's 18650 (18mm diameter, 65mm height) battery cells were verified.
(Source: https://www.theguru.co.kr/news/article.html?no=59324)
LG Energy Solution and the LG Group have long harbored a strong desire for the space business. In 2016, they were selected as a supplier of lithium-ion batteries for NASA's space exploration spacesuits. Additionally, news reports indicate that they met with key officials from the Korea Aerospace Agency (KASA) to discuss the space industry and LG's role and necessity from a "New Space" perspective. Undoubtedly, space-related business is one of the most important branches among LG Energy Solution's future growth engines, and cooperation with KULR, which maintains close ties with NASA, was likely an indispensable choice to serve as a bridgehead in the U.S. market.
(Source: https://platum.kr/archives/271000)
How is space battery development progressing?
Last year, CEO Mo shared a link to LG Energy Solution's official website newsroom in a post.
The content stated that LG Energy Solution is developing space-grade battery cells capable of operating in extreme environments with ultra-low temperatures of minus 60 degrees Celsius in collaboration with a company called South 8 Technologies, noting that this is part of the ‘Space Exploration Project’ being pursued by NASA and KULR.
Once these cells are developed, it is highly likely that they will be integrated with KULR's battery packaging technology, bearing the KULR ONE SPACE mark, and installed on various probes and rockets.
The following is an analysis of the progress since last year, conducted via Gemini.
The four-party coalition project involving LG Ensol, South 8, KULR, and NASA, announced last November, is currently proceeding quietly but very closely and concretely.
Due to the nature of the space and defense sectors, detailed progress updates following the contract signing do not frequently appear in real-time public news, so it may appear as if the news has ceased. However, by synthesizing South 8's fundraising, KULR's platform advancements, and the recent earnings announcement for May 2026, we can piece together the puzzle of how this project is taking shape.
The division of roles within this coalition and the tracked progress to date are as follows:
- The Core Division of Roles within the Four-Party Coalition
The ultimate goal of this project is to develop next-generation space batteries capable of withstanding extreme temperatures below -60 degrees Celsius and high radiation during Lunar and Mars exploration missions. LG Energy Solution: Designs base lithium-ion cells specialized for the space environment and provides manufacturing guidelines.
South 8: Injects its core weapon, LiGas® (Liquid Gas Electrolyte) technology. While standard liquid electrolytes freeze and become inoperable at -20 degrees Celsius, this gas-based electrolyte operates normally even at -60 degrees Celsius; upon impact, the gas evaporates, effectively preventing battery fires (thermal runaway).
KULR: Packages these cells into its proprietary high-performance battery pack architecture, the 'KULR ONE Space' platform, enabling them to be mounted on spacecraft or rovers, and integrates a thermal management system.
NASA (Johnson Space Center): Responsible for final verification and space mission deployment testing.
- Specific Tracking Status Updated Up to Recently
Clues indicating that this collaboration is on track are emerging from the recent activities of both South 8 and KULR. 💵 South8 Secures Additional Funding and Expands Production (December 2025 – April 2026)
Last December, immediately following the partnership announcement, South8 secured $11 million (approximately 15 billion KRW) in follow-on funding from a venture subsidiary of global materials company W.L. Gore (Gore-Tex manufacturer) and Lockheed Martin Ventures.
The core purpose of this investment was to "expand the production capacity of its San Diego plant for LiGas battery cells for space missions, in collaboration with LG Ensol, KULR, and NASA." In fact, South8 secured the capacity to finish cells for specialty customers this year (2026) and began supplying samples.
📈 KULR Begins Recognizing Grant Revenue (Latest Results as of May 2026)
The most definitive evidence is KULR's Q1 2026 earnings. Among the aforementioned non-product revenue, the $1.4 million in grant revenue recognized by the Texas Space Commission originated directly from this project (Cryogenic Battery R&D for Lunar/Mars Exploration). In other words, this means that the commitment to collaborative development with LG Ensol and South8 was not merely empty words, but that the receipt of government subsidies has begun to be recorded as actual revenue for KULR's R&D and platform integration work.
🚀 Serial Orders for the Battery Pack Platform (KULR ONE Space) (May 2026)
The KULR ONE Space platform itself, which serves as the vessel for South8's cryogenic cells, is gaining technical credibility in the market. Just a few days ago, in mid-May 2026, the space logistics company Argo Space Corp. officially signed a contract to adopt the KULR ONE Space battery system for its next-generation space missions. As the platform has passed NASA's rigorous safety standards, this demonstrates that the products of the collaboration with LG Ensol are being smoothly built upon this architecture.
💡 In summary:
Currently, this project is following a very normal trajectory, progressing through the stages of [LG Ensol's cell design ➔ South8's liquefied gas electrolyte injection ➔ KULR's pack integration and grant receipt].
Due to the nature of space and defense projects, cell testing and military/space qualification take at least 1 to 2 years. Therefore, major official news regarding the next phase is expected to materialize around the mid-to-late part of this year, when South8's line expansion is completed and initial test results from NASA's Johnson Space Center emerge.
The detailed timeline is predicted as follows:
🛠️ Phase 1: Prototype and Demonstration (As of 2026)
This is the current stage. This year marks the time when a prototype incorporating LG Ensol's cell design is released in conjunction with the completion of South8's San Diego factory expansion. KULR will then build this into a battery pack (KULR ONE Space) to undergo extreme environment testing at NASA's Johnson Space Center. 🚁 Phase 2: Entry into Special Defense and High-Altitude Drones (2027–2028)
Commercialization begins on the ground and in the air before being loaded onto spacecraft. Thanks to its characteristic of not freezing even at minus 60 degrees Celsius, it is scheduled to be first deployed in the markets for military equipment for extreme cold, Antarctic and Arctic exploration equipment, and high-altitude (10–20 km above sea level) reconnaissance drones. LG Ensol has also clearly defined its target for this period, stating, "We will create new customer value in extreme cold regions and high-altitude drones."
🚀 Phase 3: Full-Scale Aerospace and UAM Commercialization (2029–2030)
This is the period when it is fully deployed on the ultimate goals: lunar and Martian exploration rovers, spacecraft, and Urban Air Mobility (UAM). In fact, at 'InterBattery 2026' held this past March, LG Ensol officially set 2029–2030 as the target timeframe for the initial commercialization of its next-generation batteries (high-safety lines with high assembly and process compatibility).
💡 Conclusion from an Investor's Perspective
This project, driven by the synergy between LG Ensol's capital and design capabilities, South8's gas electrolyte technology, and KULR's pack packaging technology, has entered the "profit-making phase" (recognition of KULR's subsidy revenue) as of 2026.
However, it is most realistic to view mass commercialization spreading across the entire private market as starting from 2028–2029. Until then, "milestone news," such as passing NASA tests or securing surprise orders in the defense sector, will serve as the momentum to drive corporate value.
Is the collaboration with LG Energy Solution limited to space batteries?
From here on, it is in the realm of speculation. I strongly suspect that LG Energy Solution is KULR’s joint development partner for the next-generation KULR ONE MAX BBU for AI data centers. At InterBattery 2026 this year, LG Energy Solution already showcased battery solution technologies that support stable power supply for data centers by unveiling, for the first time in Korea, an LFP-based next-generation JP6 UPS rack system and a BBU (Battery Backup Unit) solution equipped with high-output cylindrical batteries as emergency power solutions for AI data centers. A business portfolio encompassing ESS, space, and AI infrastructure, extending beyond EVs, is the future LG Energy Solution has publicly declared.
Below is additional analysis based on Gemini.
It is highly likely that LG Energy Solution (hereinafter LG Ensol) is the joint development partner for the 'KULR ONE MAX BBU (Battery Backup Unit)' officially announced by KULR last December (December 17, 2025), and the industry considers it one of the leading candidates.
Although the partner company's name was unnamed in the 8-K filing at the time, a significant overlap is found when matching the key conditions presented by KULR with LG Ensol's recent activities and technological capabilities. We will explain the detailed grounds for this in four points.
- A Perfect Match with 'Ultra-High-Power 21700 Cylindrical Cells'
In its filing, KULR explicitly stated that this BBU for data centers is designed based on a "new Ultra-High-Power 21700 cell platform." LG Ensol’s Strengths: LG Ensol is a top-tier manufacturer capable of producing high-output 21700 (21mm diameter, 70mm height) cylindrical batteries with the most stable and high-volume capabilities in the world. In particular, it possesses unrivaled technological prowess in the lineup of ultra-high-output 21700 cells (e.g., cells specialized for high-current discharge) supplied for high-performance power tools, electric bicycles, and aerospace applications. There are only a handful of companies worldwide with the capacity to supply the "ultra-high-output cells capable of withstanding the instantaneous high-current loads of AI servers" required by KULR, and LG Ensol stands at the forefront among them.
- An Extension of the Already Established "Four-Party Alliance"
The strongest circumstantial evidence is that the two companies are already close partners.
Last November, news was officially announced that LG Ensol, South 8, KULR, and NASA were joining forces to develop batteries for space applications. This means that LG Ensol, a major conglomerate, has already thoroughly internally verified the technological capabilities (thermal management and NDA verification capabilities) of KULR, a small-cap tech stock with a small market capitalization.
Having built technical trust through joint R&D on space batteries, it is a very natural scenario for them to naturally expand the scope of cooperation (cross-industry expansion) into the AI data center market (supporting Meta OCP ORV3 standards and NVIDIA architectures), which KULR is pursuing as a new business.
- The Necessity of Local Production Capabilities in the U.S. (Made in USA)
The 'KULR ONE MAX BBU' project, led by KULR, aims to enter the AI data center infrastructure of U.S. Big Tech (hyperscalers).
Requirement for Supply Chain Stability: Core power infrastructure for data centers in the U.S. prefers supply chains from allied nations and local U.S. sources free from geopolitical risks. LG Ensol has currently expanded its battery factory infrastructure in North America in the most aggressive forms, both exclusively and through joint ventures (JVs). LG Ensol is the optimal local North American partner capable of reliably fulfilling the "long-term supply guarantee throughout the program lifecycle following successful UL 9540 certification" mentioned in KULR's disclosure.
- Program Scale of $100 Million (approx. 130 billion KRW)
KULR estimated the potential commercialization value of this BBU partnership at up to $100 million (Projected value of up to $100 million).
Startup-level battery manufacturers lack the capacity to supply high-quality premium cells of this scale in large quantities over the long term, and their control over unit prices is limited. The phrase in KULR's disclosure stating, "Through long-term supply contracts, we have secured predictable access to premium cells and are able to control production costs," suggests that the counterparty is a Global Leading Manufacturer with established economies of scale. ⚠️ Risk Assessment for a Balanced Perspective (Nuance)
While the technical and circumstantial conditions perfectly align with LG Ensol, the possibility that it could be **Molicel**, a subsidiary of Taiwan Cement Group (TCC) and another powerhouse in the high-output 21700 cell market, cannot be completely ruled out. This is because KULR has a history of screening and using Molicel's products in other lineups (such as KULR ONE Air).
However, considering the **'large-scale entry into AI data center infrastructure'** and the **'recent trend of partnerships solidified through NASA projects'**, it is true that there is significant weight given to the probability that the giant co-developing this MAX BBU is LG Energy Solution.