LG Energy Solution Announces U.S. Market Strategies for ESS

12 September 2023

LG Energy Solution (KRX: 373220), a leading global manufacturer of advanced lithium-ion batteries, unveiled its ESS business strategies for the U.S. to capitalize on its fast-growing energy storage market. The announcement was made at RE+ 2023, the renewable energy industry’s global trade fair taking place Sept. 11-14 at the Venetian Convention and Expo Center in Las Vegas. At the exhibit, LG Energy Solution is also showcasing its cutting-edge products and system solutions that could reshape the energy storage system landscape in North America.

“With our production excellence and differentiated technologies, we are going to triple global revenues with ESS products in 5 years,” said Seungse Chang, head of the ESS business division at LG Energy Solution. “We have already decided to invest USD 2.3 billion in the U.S. and even more investment is to come. We believe that our journey here will speed up clean energy transition in the U.S.”

The global ESS market is on the cusp of a remarkable expansion, driven by a push for innovative, sustainable energy policies. Especially for the North American ESS market, the energy research firm Wood Mackenzie predicts it will grow to 103 GWh in 2030 from just 12 GWh in 2022.

At RE+, LG Energy Solution announced four strategies to expand the business in the U.S. market: the first large-scale ESS battery production in the U.S.; a lineup of fully integrated system solution, from cell production to DC-AC integration to software-as-a-service products; IRA benefit eligibility with a localized supply chain; and a competitive edge in LFP technology.

“We are the first to secure a large-scale ESS battery production base in the U.S. The new plant will be located in Queen Creek, Arizona and start production in the first quarter of 2026 with a production capacity of 16 GWh,” Chang said. The company is also considering further expansion depending on demand and market conditions.

LG Energy Solution has also undertaken a major initiative to localize the entire supply chain from cells to packs to containers. This makes LG Energy Solution products IRA compliant and LG Energy Solution will be the only battery producer to offer extra 10 percent of IRA investment tax credits to customers.

LG Energy Solution also plans to expand its product range with advanced LFP batteries that offer greater reliability, longer life cycles, and higher cell level efficiency. The company will be the only LFP battery producer for ESS to offer immediate, responsive on-site support in addition to remote quality control for after service.

On top of producing top-quality battery cells, LG Energy Solution is becoming a fully integrated system solution provider for ESS encompassing DC-AC integration and software-as-a-service products to lead the next generation ESS.

LG Energy Solution’s fully integrated system solutions include standardized containers with plug and play system. Going beyond hardware, LG Energy Solution plans to offer a comprehensive ESS solution and seamless support throughout the life cycle by developing data-driven software solutions in collaboration with LG Energy Solution Vertech.

About LG Energy Solution

LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development, the company is the top battery-related patent holder in the world with over 25,000 patents. Its robust global network, which spans North America, Europe, Asia and Australia, includes battery manufacturing facilities established through joint ventures with major automakers such as General Motors, Stellantis N.V., Hyundai Motor Group and Honda Motor Co., Ltd. At the forefront of green business and sustainability, LG Energy Solution aims to achieve carbon-neutral operations by 2050, while embodying the value of shared growth and promoting a diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com.

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