On the way back home, they are ambushed by a Category-G Akrid, dubbed 'Red Eye.' After loading the remaining Thermal Energy on helicopter like VSs, they make their escape, only to be shot down by sandraiders. They are returning from a raid on a carpetbagger city, apparently with heavy casualties and not much Thermal Energy. The story once again shifts, this time to Waysiders, snow pirates now living in the desert. After it is killed and the members evacuated, it is revealed they are clones of Ivan Solotov, a character from Lost Planet: Extreme Condition. After failing to succeed, a 'space Akrid' appears and begins to attack the group. The game then shifts to NEVEC's Black Ops, Task Force First Descent, who fight their way through a Carpetbagger city in an effort to capture a railway gun, a train mounted with a massive cannon. After being rescued, they find out their evacuation point (Where the Category-G appeared) was a set-up and no pick up team awaited them. After destroying a mine, the Mercenaries continue on to evacuate the area, in which a Category-G Akrid appears and attacks them. The plot begins with Mercenaries fighting against Jungle Pirates. The Akrid have expanded their armies and return much more powerful in Lost Planet 2.

Player(s) assume control of several different factions such as Yuri's Snow Pirates, NEVEC (NEo-VEnus Construction) and many other groups battling the Akrid, a race of large insectoid aliens native to E.D.N. The game centers on an ongoing civil war to gain T-ENG ( Thermal- ENer Gy). The snow has melted to reveal jungles and more tropical areas that have taken the place of more frozen regions. III 10 years after the events of the first game.

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