South Korean battery manufacturer LG Energy Solution (LGES) has secured a deal to supply Taiwanese electronics manufacturing firm Delta Electronics a total 4GWh of residential energy storage system (ESS) batteries.
The two firms signed a "strategic partnership" and the US-produced batteries will be supplied during 2025-30, said LGES on 26 March. LGES will begin the production of lithium-iron-phosphate (LFP) ESS batteries in the second half of 2025 at its plant in Holland, Michigan, which will be equipped with an ESS production line.
They will also under the partnership explore the power grid and commercial ESS markets, said LGES. Delta last year agreed to jointly develop new electric vehicle (EV) charging architecture in the US alongside the US' EV public charging station provider EVGo.
LGES last year said it plans to reduce its dependence on the EV battery business and is looking to produce ESS cells in the US from 2025 through its subsidiary, LGES Vertech.
The anticipation of higher tariffs on Chinese ESS batteries coming into effect in the US has driven LGES to expect greater growth in market demand for US-produced batteries, the firm said.
The firm earlier this week signed another LFP ESS battery deal with Polish state-controlled utility PGE and it intends to also expand ESS battery production in Europe.
