Supply of ESS Batteries to US Excelsior Energy Capital Starting 2026
LG Energy Solution has secured large-scale ESS (Energy Storage System) supply contracts in North America for two consecutive months. These successive ESS supply agreements are expected to contribute to stabilizing performance during the electric vehicle chasm (a temporary demand stagnation in a growing industry).
On the 14th, LG Energy Solution announced that through its U.S. subsidiary, it signed an ESS supply contract worth 7.5GWh with Excelsior Energy Capital, a global private equity firm specializing in renewable energy. This follows last month's battery supply contract for 8GWh of ESS with renewable energy company Terra-Gen.
LFP Long Cell Supply for ESS Worth 2 Trillion KRW... Expanding the LFP Ecosystem
The battery supply is scheduled to begin in 2026 and will be produced and sold locally in North America. The 7.5GWh capacity is enough electricity for more than 750,000 households (based on four people per household) to use for one day. Considering that the price of ESS battery containers is between $170 and $200 per kWh, the contract size is estimated to be around 2 trillion KRW.
Excelsior Energy Capital is an investment firm specializing in renewable energy infrastructure. Since its establishment in 2017, it has built a diverse renewable energy investment portfolio across North America, including California, Colorado, and Tennessee, and actively invests with the goal of generating long-term and stable returns.
The products supplied under this contract are LG Energy Solution’s high-capacity LFP (Lithium Iron Phosphate) long cells based on the 'JF2 cell,' specifically the container product 'JF2 AC LINK.' This product features a higher energy density than typical LFP batteries and applies a water-cooling system with high cooling efficiency to enhance performance and safety. Its modular design also allows flexible configuration tailored to customer needs.
Additionally, LG Energy Solution plans to provide various customer-customized SI (System Integration) solutions for ESS business optimization based on its technological capabilities, including ▲Power Control Systems (PCS) ▲Energy Management Systems (EMS), and cloud-based real-time monitoring software 'AEROS™.' These offerings will help optimize installation and operation costs and improve operational convenience.
ESS Market Growing at 20% CAGR... LG Energy Solution Leading in North America
LG Energy Solution aims to capture the rapidly growing North American ESS market by leveraging its end-to-end business capabilities from batteries to SI.
While the electric vehicle market has entered a chasm phase, slowing growth, the ESS market is showing robust demand growth. In fact, the global ESS market is expected to grow sharply at an average annual rate of over 20% from 2024 to 2028, centered on power grids.
This year alone, LG Energy Solution’s ESS Battery Business Division has achieved three significant contract wins. These include a 4.8GWh contract with Hanwha Q CELLS in May and a supply contract of up to 8GWh with U.S. renewable energy company Terra-Gen in October, solidifying its leading position in the North American ESS market. The company is also steadily enhancing its local production capabilities in the U.S. to further strengthen its competitiveness in securing orders.
Kim Hyung-sik, Executive Director of LG Energy Solution’s ESS Battery Business Division, said, "This contract is meaningful as it establishes a mid- to long-term partnership between the two companies. We will successfully support projects and provide the highest customer value through differentiated product competitiveness and system integration capabilities."
Anne Marie Denman, co-founder of Excelsior Energy Capital, stated, "LG Energy Solution not only has proven production capabilities to supply products of the high technical and quality standards required by Excelsior in a timely manner but also possesses excellent software and O&M (Operations & Maintenance) SI service capabilities. We look forward to maximizing the advantages of local production in the U.S. through cooperation with LG Energy Solution."
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