All data are based on the daily closing price as of June 20, 2024

LG Energy Solution Secures $1 Billion ESS Deal with Hanwha Q Cells

Contract aims to supply 4.8 GWh of energy storage batteries in Arizona
South Korea
l 373220.KO h 009830.KO Blue Chip 150 OM 60 Mid and Small Cap 2000
Share this on

LG Energy Solution Ltd., the world’s third-largest battery manufacturer, has clinched an estimated $1 billion energy storage system (ESS) contract from the US division of South Korea’s Hanwha Q Cells, known as Qcells. This strategic move comes amid a slowdown in the global electric vehicle (EV) market, as the company seeks to bolster its profitability.

The agreement, announced on Friday, involves supplying 4.8 gigawatt-hours (GWh) of ESS batteries to Hanwha Q Cells USA Corp. by October 1, 2026. These batteries will be used in an ESS project located in La Paz County, Arizona. Industry sources in Seoul have indicated that this project, valued at approximately 1.4 trillion won ($1 billion), will be the largest single power grid ESS endeavor undertaken by LG Energy to date.

“The partnership between LG Energy Solution and Hanwha Q Cells in North America is noteworthy, especially given the current challenges in the EV market,” noted a Seoul-based industry expert. The collaboration is expected to enhance their dominance in the burgeoning North American ESS market.

In addition to this deal, LG Energy has committed to developing a battery complex in Arizona, aimed at producing 17 GWh of lithium iron phosphate (LFP) ESS batteries by 2026. This facility will further solidify LG Energy’s position in the ESS sector.

LG Energy Solution Vertech Inc., a subsidiary established in 2022, will handle system integration for Hanwha Q Cells, encompassing planning, design, installation, maintenance, and repair of the ESS infrastructure.

This contract is part of a broader agreement between LG Energy and various Hanwha Group units, including Hanwha Solutions Corp., to collaborate on battery business initiatives. According to SNE Research, the regional ESS market is projected to more than triple, reaching 181 GWh by 2035 from 55 GWh in 2025. This growth underscores the strategic importance of LG Energy’s latest partnership with Hanwha Q Cells.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top