LG Energy Solution to Supply 4.8GWh ESS to Hanwha Q CELLS in the US

Largest Single ESS Project Scale

Visitors attending 'InterBattery 2022' held at COEX, Samseong-dong, Gangnam-gu, Seoul in 2022 are examining LG Energy Solution's portable energy storage system (ESS) model. Photo by Hyunmin Kim kimhyun81@

LG Energy Solution will supply large-scale energy storage systems (ESS) to Hanwha Q CELLS, a leader in the North American solar market. Amid a downturn in the battery industry due to the chasm in the electric vehicle market, this large-scale ESS order is welcome news.

On the 16th, LG Energy Solution announced on the 17th that it had signed a contract to supply a total of 4.8 GWh (gigawatt-hours) of ESS batteries with Hanwha Solutions Q CELLS Division (Hanwha Q CELLS) US subsidiary.

The supply price was not disclosed, but considering that the price of large-capacity batteries for ESS is about $100 million to $200 million per 1 GWh, the contract is expected to be worth around 1 trillion KRW. This is the largest single contract in LG Energy Solution’s global power grid ESS projects to date. The contract period is until October 2026, and the supplied ESS will be installed in La Paz County, Arizona, USA.

Previously, last year, LG Energy Solution and three Hanwha Group companies (Hanwha Q CELLS, Hanwha Corporation Momentum Division, and Hanwha Aerospace) signed a memorandum of understanding (MOU) for business cooperation related to ESS and battery businesses. Through this contract, not only battery supply but also system integration (SI) by LG Energy Solution’s Verttech is expected to be provided.

Verttech is an ESS SI specialized subsidiary officially launched by LG Energy Solution in 2022, possessing capabilities covering the entire ESS business including planning, design, installation, maintenance, and repair. To secure a leading position in the rapidly growing North American ESS market, LG Energy Solution is currently constructing a 17 GWh lithium iron phosphate (LFP) battery factory for ESS in Arizona. The factory is scheduled to start full operation in 2026.

According to market research firm SNE Research, the North American ESS market is expected to grow from 55 GWh in 2023 to 181 GWh by 2035.