"In Discussions with North American Customers on Supplying ESS Batteries"
On June 1, LG Energy Solution announced that it has begun large-scale mass production of LFP (lithium iron phosphate) batteries for energy storage systems (ESS) at its Michigan Holland plant in the United States. Among major global battery manufacturers, LG Energy Solution is the only company to have established a large-scale mass production system for ESS LFP batteries in the United States.
The products being produced are pouch-type LFP batteries for ESS based on Long Cell technology. These batteries feature excellent energy efficiency and safety, as well as strong price competitiveness. Supply of this product has already been confirmed to major customers such as Terragen and Delta.
LG Energy Solution emphasized that this large-scale mass production has further strengthened its local production capabilities in North America. The company is now able to provide stable product supply and rapid on-site support to key local customers. In particular, as the products are not affected by tariffs, LG Energy Solution has secured price competitiveness over its competitors.
This mass production is the result of LG Energy Solution's ongoing 'strategic rebalancing.' The company is pursuing this strategy to improve investment efficiency and reduce unnecessary costs at a time when external business uncertainties are increasing due to a temporary slowdown in global electric vehicle market growth and tariff policies.
Initially, the plan was to begin mass production of ESS LFP batteries at a new plant in Arizona starting in 2026. Instead, LG Energy Solution quickly converted existing space at the Holland plant, which had been producing electric vehicle batteries, into a production line for ESS, and optimized the facilities, allowing mass production to begin ahead of the original schedule.
LG Energy Solution plans to respond swiftly to the rapidly increasing demand for ESS across various industries, including artificial intelligence (AI) data centers and eco-friendly energy, by leveraging its strategic local production system.
LG Energy Solution stated, "We are currently in discussions with numerous customers in North America regarding the supply of ESS batteries," adding, "We will continue to lead in delivering customer value based on our best-in-class technology and rapid local response."
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