LG Energy Solution said Tuesday it will expand its footing in the burgeoning energy storage systems market in the US.
ESS refers to a device or group of devices assembled to convert the electrical energy from power systems and into energy that can be stored for later use. It can be used in a variety of settings ranging from power grids to commercial buildings and residences.
The company has unveiled its latest ESS business vision and technologies at the Re+ 2023, one of the biggest renewable energy exhibitions in the US. The exhibition runs from Monday through Thursday in Las Vegas.
The company aims to gain the upper hand in the US’ ESS market under four key business strategies -- operating production facilities in the US, improving the local supply chain, creating a competitive edge in lithium iron phosphate (LFP) battery technology and system integration.
The LFP battery manufacturing plant, designed exclusively for ESS in Arizona, will play a vital role in expanding strategic partnerships with local clients, according to LG Energy Solution. Through a 3-trillion-won ($2.26 billion) investment, the plant is expected to start commercial operation in 2026. Its annual production capacity is projected to be 16 gigawatt hours.
As for the supply chain, LG looks to source key raw materials and parts used in battery cells, packs and containers from local suppliers so that the company’s clients can be eligible for Inflation Reduction Act tax credits.
The company's LFP battery technology will allow for more credible and efficient ESS batteries with a longer life span, the battery maker said.
Last year, it set up LG Energy Solution Vertech. Inc in order to strengthen ESS system integration that oversees all parts of the ESS business, including supply, business planning, design, installation, maintenance and repair. It will add real-time monitoring and a system that predicts possible maintenance and repair to its services as well.
“Based on our production and technologies, the company’s goal is to increase ESS sales more than threefold in five years,” said Jang Seung-se, head of the ESS department at LG Energy Solution, in a statement. “LG plans to further invest in the US, one of the fastest growing ESS markets in the world.”
At its Re+ 2023 exhibition booth, LG Energy Solution is showcasing a modular type water-cooling container equipped with 4.76 megawatt-hour LFP battery cells for power grids. It has also showcased nickel, manganese and cobalt (NCM) battery-based ESS products for homes, called enblock S and enblock S+, which add inverters to the ESS.