HD Hyundai Electric secured a 140 billion won ($100.5 million) contract to build a 200-megawatt-hour battery storage facility in Texas, marking the South Korean power equipment maker’s entry into a rapidly expanding U.S. market.
The Rutile BESS Project in Runnels County will store surplus electricity and distribute it across Texas when demand peaks, according to company statements released Thursday. HD Hyundai Electric established a Texas subsidiary in April to prepare for battery storage expansion.
The timing reflects Texas’s explosive growth in energy storage capacity. Battery storage capacity in ERCOT, Texas’s grid operator, has grown from minimal levels to over 8 gigawatts since the deadly 2021 winter storm, with operators adding 730 megawatts in September alone.
Power demand has surged as Apple, Google, Tesla and Oracle build large-scale campuses and data centers in the state. Battery storage represents just 3% of total capacity but can significantly stabilize grid operations, earning substantial revenues during peak demand periods.
However, HD Hyundai Electric faces intensifying competition. Six major operators now control over 1 gigawatt each in Texas, while developers have more than 40 gigawatts of battery projects in ERCOT’s interconnection queue. Market revenue dynamics are shifting as battery deployment accelerates, potentially pressuring profit margins for new entrants.
