'6 Trillion Won Large Contract' Secured by LG Energy Solution, Sees Effects of Mass Production of ESS Batteries in the U.S.

[Financial News] LG Energy Solution's effect of initiating the first large-scale mass production system for lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in the U.S. among major global battery companies is becoming visible through securing large contracts. LG Energy Solution announced on the 30th that it has signed a 43 billion dollar (approximately 6 trillion won) LFP battery supply contract, which is considered a great achievement achieved about two months after starting mass production of ESS LFP batteries at the Michigan Holland plant in the U.S. since May.

With the establishment of a large-scale mass production system in the U.S., LG Energy Solution has gained momentum in securing product competitiveness by enabling stable product supply and rapid on-site support to major local customers. It is expected to secure superior price competitiveness compared to competitors, free from tariff impacts. This mass production is considered a significant achievement of LG Energy Solution's ongoing 'Strategic Rebalancing (Rebalancing. Restructuring)'. 
The initial plan was to build a new plant in the Arizona region of the U.S. to start mass production in 2026, but by quickly converting the space within the Michigan Holland plant, which has been producing batteries for electric vehicles (EV), into a production line for ESS, and optimizing the facilities, the timeline could be advanced.
This local mass production competitiveness is expected to provide a foundation for LG Energy Solution to further strengthen its position in the U.S. ESS market, even amid uncertain policy situations. It is explained that this large-scale order was greatly influenced by LG Energy Solution's rapid local production system. The market estimates that LG Energy Solution has signed a contract with Tesla, and it is believed that additional contract extensions for ESS batteries are possible.
Additionally, LG Energy Solution plans to respond swiftly to the rapidly increasing demand for ESS in various industries such as artificial intelligence (AI) data centers and eco-friendly energy, based on its strategic local production system.



LG Energy Solution plans to showcase differentiated product competitiveness through this mass production.
The Long Cell-based pouch-type LFP batteries for ESS, to be produced at the Michigan Holland plant, secure high energy efficiency, excellent safety, and price competitiveness.
In addition to this product technology, another competitive edge of LG Energy Solution targeting the North American market is its ESS System Integration (SI) capability.
LG Energy Solution is focusing on expanding its system integration solution business capabilities, covering the entire ESS spectrum from simple battery manufacturing to supply, business planning, design, installation, maintenance, and repair.
An LG Energy Solution representative stated, "Based on overwhelming technological prowess and complete business capabilities, including local production ESS SI, we will further strengthen our ESS portfolio," emphasizing, "Through this, we will grow into a leading battery company in the North American ESS market." hjkim01@fnnews.com Hakjae Kim Reporter