LG Energy Solution Vertech wins 10GWh ESS projects in the US

LG Energy Solution Vertech Inc., a Texas-based energy storage system (ESS) supplier, has secured a combined 10-gigawatt hours (GWh) of grid-scale battery ESS projects from the US since its establishment in early 2022, the company said on Wednesday.

The projects are comprised of 10 integrated battery energy storage systems, incorporating lithium-ion batteries manufactured by LG Energy Solution Ltd. with energy equipment, system controls software and maintenance services offered by the US unit.

LG Energy Solution Vertech was established after South Korea's LG Energy Solution Ltd. acquired NEC Energy Solutions from Japanese energy company NEC Corp. in February last year.

The purchase was aimed at vertically integrating LG’s rechargeable batteries and energy storage equipment installation services to penetrate the US power grid ESS market.

Under the 10 ESS projects, LG will deploy its proprietary energy storage software platform AEROS^tm to all ESS installation sites.

AEROS^tm is an energy management system software that secures and monitors the entire ESS operation data real time. It deals with major equipment such as batteries and data related to the ESS operation.

“Being selected by experienced US project developers supports our vertically integrated approach to the market,” Park Jaehong, CEO and President of LG Energy Solution Vertech, said in a statement.

Park said the US Inflation Reduction Act, signed into law last year, will provide a boost to the US energy storage industry “especially as large-scale battery manufacturing plants come online within the next two to three years.”

Previously, LG Energy has announced plans to construct a battery manufacturing complex in Queen Creek, Arizona. The complex will consist of two manufacturing facilities: one for cylindrical batteries for electric vehicles and another for lithium iron phosphate (LFP) pouch-type batteries for ESS.

The facilities will provide a combined 16GWh of battery energy storage that will maximize IRA benefits for customers, the company said.

The 2024 grid-scale ESS market is expected to reach 30GWh in total, with a 35% increase compared to 2023, LG said, citing US Energy Storage Monitor's quarterly publication issued for the fourth quarter of this year.

Before the merger with NEC Solutions, LG Energy Solution supplied 1.2GWh of batteries to Vistra Corp., a Texas-based energy company, in 2021. That was the world's largest supply deal for a single power grid site at the time.

Write to Hyung-Kyu Kim at khk@hankyung.com
 

Yeonhee Kim edited this article.