LG Energy Solution eyes US market for ESS

South Korea's LG Energy Solution Ltd. is accelerating its entry into the rapidly growing US market for energy storage systems (ESS).

The company on Tuesday said it will attend through Thursday Re+ 2023, the largest renewable energy trade show in Las Vegas.

At the exhibition, LG Energy Solution will showcase its latest ESS products and technologies like modular water-cooled containers for power grids that use lithium iron phosphate (LFP) cells.

This product has lower maintenance costs and a longer lifespan and the use of a modular type allows diverse demand to be reflected considering a region's environment and regulations.

In addition, the company announced four key business strategies to lead the US ESS market: use of its large-scale plant under construction in Arizona, reinforcement of the supply chain system, differentiated LPF battery technology and system integration capabilities.

The global ESS market is surging amid the expansion of related policy support in each country.

Wood Mackenzie, a UK-based global research and consulting group for energy, chemicals, renewables, metals and mining, said the North American ESS market is expected to grow over eight-fold from 12 gigawatt hours last year to 103 in 2030.

"Based on our proven production capacity and differentiated competitiveness in ESS technology, we plan to more than triple sales of our ESS Division within five years," said Chang Seung-se, executive director of LG Energy Solution's ESS Division.

"To focus on the US market, which is expected to grow rapidly, we decided to invest 3 trillion won early this year to build a new LFP battery plant in Arizona and make more investments later."

Write to Sungsu Bae at baebae@hankyung.com