Pouch-type batteries are drawing renewed interest in defense and robotics as battery companies expand beyond slowing EV demand into sectors such as energy storage. The format offers high energy density and design flexibility but has faced concerns about rapid heat transfer between cells during thermal runaway. With all-solid-state solutions still years away, competition is shifting to external safety materials such as thermal barriers. Demand is also emerging from submarines and robots, though high material costs remain a hurdle for mass adoption.

LG Energy Solution, Samsung SDI and SK On returned to operating profit in the second quarter, but analysts say their core battery businesses remain weak once U.S. AMPC tax credits, one-off gains and restructuring effects are stripped out. The companies said they brought forward the timing of the turnaround, while momentum is shifting from electric vehicles to energy storage systems and data centre demand. They expect profitability excluding AMPC from the fourth quarter.