PRESS RELEASE: With the US coming to the end of its warmest year on record, it appears the country is more committed than ever to clean energy. LG Energy Solution Vertech has already lined up 10 GWh of grid-scale battery energy storage (ESS) projects in the US for the new year, proving the US ESS market has exactly as much potential as predicted. These 10GWh are comprised of 10 integrated battery energy storage systems that will support the nation’s continued transition towards sustainable renewable energy.
According to the Environmental Protection Agency’s Greenhouse Gas Equivalencies calculator, these installations combined equate to diverting almost 8 million pounds of coal or 16 million pounds of Co2 emissions per year. This portfolio of projects marks a step forward in LG Energy Solution Vertech’s mission of integrating reliable and bankable energy storage systems and services that maximize project ROI while achieving sustainability goals. As the World Meteorological Organization recently announced that “2023 has shattered climate records” and is set to be the warmest year on record, this mission is more important than ever.
LG Energy Solution Vertech was established when LG Energy Solution acquired NEC Energy Solutions in February 2022 to vertically merge battery manufacturing and energy storage system integration. These 10GWhs secured since the acquisition is over five times the total energy storage projects completed by NEC Energy Solutions during its tenure, as LG Energy Solution Vertech continues to build on the experience of its predecessor.
All projects will incorporate advanced lithium-ion batteries manufactured by LG Energy Solution with hardware integration, system controls software, and related services provided by LG Energy Solution Vertech. Notably, the AEROS™ software suite will be deployed to all sites to provide end-users with both onsite supervisory and controls services as well as cloud-based access to site performance analytics. AEROS™ users will also be able to gain insight into optimizing project revenues with advanced AI and machine learning analytics, as well as resource plan with the software’s digital twin capabilities.
“Being selected by experienced US project developers supports our vertically integrated approach to the market,” Jaehong Park, CEO and President of LG Energy Solution Vertech shared. “The advantages of having a global battery company integrate storage systems wrapped with warranties supported by a financially strong company – like LG Energy Solution – are hard to ignore. The awards coincide with passage of the IRA, legislation that further strengthens our view that the US energy storage industry is set for sustained growth especially as large-scale battery manufacturing plants come on-line within the next 2-3 years.”
In the Q4 2023 US Energy Storage Monitor, a quarterly publication from Wood Mackenzie Power & Renewables and the American Clean Power Association (ACP), the 2024 grid-scale ESS market is expected to reach 30GWh total, with a 35% increase over 2023. The US market is living up to expected potential.
LG Energy Solution is committed to the rapidly growing US energy storage market. To that end, the company 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 (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS). The ESS facility will provide 16GWhs of energy storage batteries that will maximize IRA benefits for customers.
“Thanks to our unique processing technology, the new Long-Cell based LFP batteries produced in Queen Creek, Arizona will feature improved energy density and safety,” said Hyung Kim, head of ESS business division at LG Energy Solution. “We will continue to strengthen our position in the North American power grid ESS market.”
As the US energy market evolves, streamlined supply chains are of paramount importance. Localizing energy storage battery production further solidifies the reliable supply chain LG Energy Solution offers to battery energy storage companies.
About LG Energy Solution Vertech
LG Energy Solution Vertech is an energy storage systems integrator backed by LG Energy Solution (LGES). The company delivers integrated, reliable, and bankable grid-scale energy storage systems supported by in-house services and software.
In 2022, LGES purchased NEC Energy Solutions and established LG Energy Solution Vertech Inc. By vertically integrating the battery manufacturer and integrator, LG Energy Solution Vertech is able to offer customers a uniquely streamlined experience and comprehensive support through a system-level contracting process. Via a single contract, the company provides systems, warranties, services, and software. The combination of excellence in technology coupled with nearly two decades of energy storage integration makes LG Energy Solution Vertech a leader in the global energy storage market.
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 (R&D), 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 diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com.
Contacts
Amy Hollyfield
US Inquiries / Zeno Group US
amy.hollyfield@zenogroup.com
+1.650.868.3363
Licole Sheridan
Marketing Manager / LG Energy Solution Vertech
lsheridan@lgensol-vt.com
+1.914.656.0002
