South Korean battery giant LG Energy Solution (LGES) has just announced its target to boost its global energy storage system (ESS) sales by threefold “in 5 years” during the RE+ 2023 event, the press release indicated.
In order to achieve that, LGES aims to significantly expand its operation in the United States.
“With our production excellence and differentiated technologies, we are going to triple global revenues with ESS products in 5 years. We have already decided to invest USD 2.3 billion in the US and even more investment is to come. We believe that our journey here will speed up clean energy transition in the US.”
Seungse Chang, head of the ESS business division at LG Energy Solution
LGES’ four strategies
LGES outlined its four key expansion strategies in the US to ensure it can hit its 5-year target of threefold sales growth. These strategies include the following:
- first mass production of ESS battery in the Arizona, US.
- a wide range of fully integrated system solution, from cell production to DC-AC integration to software-as-a-service products.
- IRA incentives with a domestic supply chain.
- a competitive advantage in LFP battery technology.
“We are the first to secure a large-scale ESS battery production base in the US. The new plant will be located in Queen Creek, Arizona and start production in the first quarter of 2026 with a production capacity of 16 GWh.”
Seungse Chang, head of the ESS business division at LG Energy Solution
RE+ 2023 details
The RE+ 2023 is the renewable energy industry’s prestigious global trade fair. It commenced from September 11 to 14, 2023, at the Las Vegas Venetian Convention and Expo Center.
LGES took this opportunity to showcase its innovative ESS offering and services that may advance the local industry. One of these products is the LFP Liquid Cooling Container for grid-scale applications. According to the press release, it is a modular system with a 4.76 megawatt-hours capacity.
Overall, LGES exhibited the following ESS products at the RE+ 2023:
- Grid-Scale ESS Zone: LFP Cell & Pack, LFP Liquid Cooling Container, S-Frame Pack
- Residential ESS Zone: LG Energy Solution enblock S, LG Energy Solution enblock S+, Prime +
Arizona battery factory
LGES committed to invest 3 trillion won ($2.26 billion) to develop its new LFP battery plant in Arizona in early 2023.
The company aims to begin construction at the site later this year. The Arizona plant is also expected to begin volume production as early as 2026.
It will produce pouch-type LFP batteries with approximately 16 GWh production output per year. This new production center will significantly aid the company’s efforts in tripling its sales in five years.
See Also:
- Hyundai, LGES to add $2B into their joint battery factory development in Georgia
- LGES to construct new factories across five US states, boosting battery production output by over 55 times by 2027
- LGES confirms plans to invest USD 5.56 billion to construct its LFP battery plants in Arizona
- Honda, LGES break ground for new JV battery plant in Ohio
- Ford forms partnership with LGES and Koç Holding for EV battery plant development in Europe
North America’s ESS industry will surge from only 12 GWh in 2022 to a whopping 103 GWh in 2030, according to Wood Mackenzie’s forecast. That considered, it is unsurprising that LGES has grown a significant interest in the region. This expansion effort will undoubtedly aid the company to advance in the global industry as one of the leading providers of energy storage products.
