On Thursday, LG Energy Solution's stock increased by as much as 16.56% following the announcement that its U.S. subsidiary, LG Energy Solution Vertech, will provide battery cells for eight energy storage projects in Michigan.
These projects are expected to deliver 1.5 gigawatts of battery storage capacity, equivalent to 6 gigawatt-hours, enabling the storage of excess electricity for later distribution. The deal, valued at $1.6 billion according to a Yonhap report, underscores the growing demand for locally produced energy storage solutions in the U.S.
Jaehong Park, CEO of LG Energy Solution Vertech, emphasized the importance of these projects in supporting national energy needs.
The South Korean company has been actively expanding its energy storage systems business in North America, with plans to achieve over 50GWh of production capacity in the region by the end of this year, leveraging its extensive production network that includes three standalone facilities and two joint ventures