U.S. growth invigorated by LG Energy Solution as they launch LFP battery line
LG Energy Solution, a leading global battery manufacturer, has announced its strategic focus on the North American energy storage system (ESS) market. The company is driving its growth in the region through the rollout of lithium iron phosphate (LFP) batteries for ESS, as it starts mass production at its plant in Holland, Michigan, in June 2023.
The mass-produced ESS-bound LFP pouch-type batteries, based on long cells at the Michigan plant, offer high energy efficiency, excellent safety, and cost competitiveness. This strategic move is part of LG Energy Solution's growth strategy, which involves providing a total ESS solution, including manufacturing, ESS system integration, and software services.
LG Energy Solution's software services will include real-time monitoring and predictive maintenance to provide unparalleled customer value. The company has already secured ESS system integration (SI) capabilities in the US by establishing local subsidiary LG Energy Solution Vertech in 2022.
The global ESS battery market is projected to experience significant growth, according to market analysis. By 2035, the market size is expected to grow from 185 GWh in 2023 to 1,232 GWh, as reported by SNE Research. LG Energy Solution aims to capitalise on this growth by strengthening its ESS portfolio based on its unmatched technology and complete ESS value chain.
LG Energy Solution has already confirmed supply of the ESS-bound LFP batteries to major clients such as Terra-Gen and Delta. The company's strategy is to lead the North American ESS market through its growth in the region, by offering a total ESS solution, ranging from supply to business planning, design, installation, and battery maintenance and repair.
In addition, LG Energy Solution plans to respond to rapidly increasing demand for ESS batteries from artificial intelligence data centers and the eco-friendly energy sector. The company's focus on the North American market is a strategic move to capitalize on the growing ESS battery market, and it has gained a competitive edge by providing stable supplies to local customers and offering on-site support.
Originally, LG Energy Solution planned to begin mass production of LFP batteries for ESS at a new plant in Arizona in 2026. However, due to strategic rebalancing efforts, the company has accelerated the schedule and started production in Michigan earlier than expected.
In conclusion, LG Energy Solution's strategic focus on the North American ESS market, coupled with its advanced technology and comprehensive solution offerings, positions the company well to lead the growing ESS battery market in the region.
