Seoul: LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, has announced a five-year agreement with a Taiwanese company to supply batteries for residential energy storage systems (ESSs) in the United States.
According to Yonhap News Agency, LGES will supply Delta Electronics, Inc. with lithium iron phosphate (LFP) batteries for the 4-gigawatt-hour (GWh) residential ESS systems through 2030. These batteries are set to be produced at LGES' plant located in Michigan. Delta Electronics plans to launch the LFP battery-equipped residential ESS systems in the U.S. market later this year.
The company anticipates that this agreement will pave the way for further ESS battery deals in the U.S. market. The U.S. residential ESS market is projected to expand significantly, growing from 1.28 trillion won in 2022 to 6.76 trillion won (US$4.74 billion) by 2030, as reported by the global market research firm Fortune Business Insights.
In North America, LGES operates three battery cell plants, two in collaboration with General Motors Co. and another in Holland, Michigan. The company also has production facilities in South Korea, Poland, China, and Indonesia.