[News Article] LG Energy Solution Expands North American Business with Dedicated Factory, Corporate …
LG Energy Solution
Expands North American Business with Dedicated Factory, Corporate Acquisitions
By Jasmine Choi,
BusinessKorea - LG Energy Solution is actively expanding its business in North
America. Following its success in electric vehicle batteries, the company is
now accelerating its Energy Storage Systems (ESS) business. The growth of ESS
is closely tied to the increasing generation of renewable energy. According to the
recent quarterly report disclosed on the Financial Supervisory Service’s
Electronic Disclosure System in South Korea, LG Energy Solution’s ESS solution
company, LG Energy Solution Vertech, recorded sales of 1.097 trillion won
(US$833.5 million) from the first to the third quarter of last year. This is a
289.0% increase compared to the same period the previous year, which recorded
282 billion won. Additionally, in the third quarter of last year, the company
turned a profit, achieving a net income of 81 billion won in contrast to a net
loss of 93 billion won during the same period the previous year. In the U.S., LG
Energy Solution is expanding its influence in the electric vehicle battery
market through investments in production facilities. The company has
established joint ventures in the U.S. with major automakers such as Hyundai
Motor Company, GM, Stellantis, and Honda, securing eight out of the top ten car
manufacturers as clients. Moreover, the
company is accelerating its efforts to capture the U.S. ESS market and aims to
triple its ESS division’s revenue within five years. According to the
U.S. Energy Information Administration (EIA) and market research firm Statista,
the U.S. ESS market is projected to grow to US$8.261 billion by 2025. LG Energy Solution
decided to invest 3 trillion won early last year to establish a dedicated ESS
factory in Arizona in the U.S. With a capacity of 16 GWh, the plant aims to
start mass production by 2026. In February 2022,
after acquiring the U.S. ESS System Integration (SI) specialist, NEC Energy
Solutions, LG Energy Solution established LG Energy Solution Vertech. The
company provides all solutions related to ESS, including battery supply, and is
wholly owned by LG Energy Solution. Since its
establishment, LG Energy Solution Vertech has secured ESS grid projects in the
U.S. with a combined capacity of 10 GWh by the end of last year. This capacity
is the total of more than ten power grid projects ordered so far. All projects
involve lithium-ion batteries manufactured by LG Energy Solution and system
control systems, with Vertech’s proprietary software Aeros being implemented. Meanwhile, according
to market research firm SNE Research, LG Energy Solution ranked fourth in the
global ESS market last year with a 7.5% market share. 출처:
https://www.businesskorea.co.kr/news/articleView.html?idxno=209437
2024.01.12