LG Energy Solution wins ESS supply deal from US firm

SEOUL: LG Energy Solution Ltd (LGES), South Korea's leading battery maker, said on Friday its US unit has signed a multi-year deal to supply energy storage systems (ESS) to a local renewable energy infrastructure investor.

LG Energy Solution Vertech, Inc. will supply 7.5-gigawatt-hour (GWh) ESS units to Excelsior Energy Capital LP over several years starting from 2026, the company said in a press release.

The company didn't provide the exact timeframe for the deal, or its value, reports Yonhap news agency. The ESS units will be produced at LGES' U.S. plants, with the first delivery slated for April 2026, the release said.

"We selected LG Energy Solution Vertech because of their ability to support us throughout the project lifecycle with exceptional services, software and products. We also gain access to the full benefits of U.S. manufactured products with this partnership," Anne Marie Denman, co-founder and partner of Excelsior, said in the release.

The U.S. deal follows another deal signed last month to supply 8 GWh ESS to local renewable energy firm Terra-Gen Power Holdings II, LLC. for four years through 2029.

LGES expects the latest deals will help its U.S. unit obtain further ESS contracts in the significant U.S. market.

In 2022, LGES acquired the entire stake in NEC Energy Solutions, a U.S. nonautomotive lithium-ion battery and system integration company, from its parent NEC Corp., and changed the company's name to LG Energy Solution Vertech.

The acquisition was aimed at strengthening LGES' ability to provide fully integrated ESS solutions that include installation, maintenance and operational support.

Last month, LG Energy Solution signed another long-term deal to supply energy storage systems (ESS) for US renewable energy firm Terra-Gen Power Holdings II, LLC for four years through 2029.