""The story takes place back on E.D.N. III 10 years after the events of the first game. The snow has melted to reveal jungles and more tropical areas that have taken the place of more frozen regions. The game will center on an ongoing civil war to gain T-ENG (Thermal-ENerGy). The player(s) will 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 insects native to E.D.N. III. The Akrid have expanded their armies and return much more powerful in Lost Planet 2.
Interestingly enough, as stated by the creators of Lost Planet 2; the '2' included in the title isn't actually a reference to the sequel, but actually means 'squared'. This is shown to emphasize just how much bigger the game has become."
Source: Wikipedia, "Lost_Planet_2," available under the CC-BY-SA License.