November 21, 2024

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LG Energy Solution's container battery product for energy storage system (LG Energy Solution)

LG Energy Solution has secured a contract to supply up to 8 gigawatt-hour energy storage systems to US renewable energy firm Terra-Gen, the Korean battery-maker announced Thursday.

Under the deal, LG Energy Solution Vertech will deliver the ESS to Terra-Gen from 2026 to 2029. The Korean battery maker acquired NEC Energy Solutions, a grid battery integrator based in the US, in 2022 and renamed it LG Energy Solution Vertech. The deal marked the biggest supply contract since the launch of LG Energy Solution Vertech.

The value of the four-year contract was not disclosed. According to LG Energy Solution, 8 GWh of ESS is enough to power 800,000 households for a day.

The supplied ESS, named “New Modularized Solutions” as a container module product equipped with lithium iron phosphate battery cells, will be manufactured in the US. LG Energy Solution plans to offer not only hardware but also software services that can monitor the ESS’ status and data in real-time.

“The collaboration with Terra-Gen will be an important milestone in expanding our ESS capabilities not only in North America but across the globe,” said Kim Hyung-sik, vice president of LG Energy Solution’s ESS division.

“Based on our long-term partnership, we will strengthen local production capabilities and integrated solution expertise to deliver distinguished customer value.”

LG Energy Solution Vertech previously struck a deal with Terra-Gen to supply 2.2 GWh of ESS to California.

“Terra-Gen is excited to expand our partnership with LG Energy Solution Vertech,” said Gus Luna, chief development officer at Terra-Gen. “Their state-of-the-art lithium-ion batteries will help Terra-Gen achieve our aggressive growth and development plans domestically and do so in an environmentally sustainable manner.”

LG Energy Solution has been focusing on diversifying its business portfolio beyond the EV battery sector as it recently announced the goal of topping the US ESS market in 2028.

According to market analysis SNE Research, the global ESS market is expected to grow rapidly to hit 618 GWh in 2035 from 185 GWh in 2023.

By Kan Hyeong-woo (hwkan@heraldcorp.com)