LG Energy Solution secured a strategic partnership with Poland’s state-owned PGE to supply 981MWh of energy storage system batteries, marking a significant advancement in the company’s European expansion. The deal, announced March 24, will see LG Energy Solution providing grid-scale ESS batteries between 2026 and 2027 for PGE’s energy storage facility in Żarnowiec, Poland.
The project, valued at PLN1.555 billion (US$385 million), represents one of the largest grid-scale ESS initiatives in Poland, where capacity market contracts are driving substantial battery storage development.
Simultaneously, LG Energy Solution is bolstering its North American presence through a partnership with Delta Electronics. The five-year agreement, signed March 27, will supply 4GWh of residential ESS batteries – enough to power approximately 400,000 households for a day.
To meet surging demand, the battery manufacturer is reconfiguring its global production network. The company will begin manufacturing LFP batteries for ESS applications at its Holland plant in Michigan during the second half of 2025, accelerating local production ahead of schedule. Similarly, its Wroclaw facility in Poland will transition from electric vehicle battery production to ESS lines.
Industry analysts note that LG Energy Solution’s local manufacturing capabilities provide a competitive advantage, particularly as import tariffs on Chinese ESS batteries are expected to increase in the United States.
The company appears positioned to capitalize on shifting market dynamics. While experiencing slowdowns in its electric vehicle battery segment, LG Energy Solution has identified the rapidly growing ESS market as a “new growth engine,” with executives emphasizing the strategic importance of LFP battery development for energy storage applications.
Additionally, the South Korean manufacturer is reportedly negotiating with Japanese electronics firm Omron for LFP battery supply, potentially worth billions of won, though company representatives declined to confirm details about ongoing client negotiations.
