OCI Holdings and LG Energy Solution have partnered with San Antonio’s CPS Energy to develop large-scale battery storage projects across North America, as the Korean companies seek new revenue streams beyond traditional markets.
The South Korean firms signed a memorandum of understanding with the Texas municipal utility in April to collaborate on 13 energy storage projects totaling 3 gigawatts of capacity. The partnership will start with the Alamo City project, scheduled for completion next year.
Under the arrangement, OCI Energy will purchase batteries from LG Energy Solution’s Vertech subsidiary to store solar power during peak generation hours, then sell electricity to CPS Energy during periods of higher demand. CPS Energy serves approximately 1.28 million customers across Texas and has been aggressively expanding its storage portfolio.
The deal reflects broader industry shifts as battery manufacturers pivot strategies. LG Energy Solution has been converting electric vehicle production lines to energy storage systems as automotive demand cools, while seeking stable revenue from utility-scale projects.
For CPS Energy, the partnership adds to recent storage agreements totaling hundreds of megawatts as the utility works toward its Vision 2027 generation plan. Municipal utilities can now capture federal investment tax credits directly through the Inflation Reduction Act, making storage ownership more attractive than traditional power purchase agreements.
The collaboration signals growing Korean investment in U.S. energy infrastructure as companies navigate trade tensions and seek geographic diversification.
