LG Energy Solution's power grid energy storage system battery container products / Courtesy of LG Energy Solution

LG Energy Solution said Thursday its U.S. subsidiary LG Energy Solution Vertech has signed a $1.8 billion supply agreement with DTE Energy to develop Michigan-made battery energy storage systems across the U.S. state, in a deal covering 6 gigawatt-hours (GWh) of storage capacity.

Under the agreement, LG Energy Solution Vertech will supply battery energy storage systems for eight projects over the next two years. The projects will provide a combined 1.5 gigawatts, or 6 gigawatt-hours, of battery storage capacity aimed at enhancing grid reliability and supporting clean energy deployment.

The systems will store electricity during periods of excess generation and supply power during peak demand, helping reduce strain on the grid and improving operational efficiency.

“Michigan is a key U.S. manufacturing region for our company, where many of our colleagues live and work,” said Park Jae-hong, CEO and president of LG Energy Solution Vertech. “We’re thrilled to work with DTE to bring Michigan-made energy storage to local communities.”

LG Energy Solution said the projects will use battery cells produced at its facilities in Michigan, as well as other manufacturing sites in the United States and Canada.

“DTE is committed to building a bright future for Michigan,” said Joi Harris, president and CEO of DTE Energy. “By working with LG Energy Solution Vertech to expand battery storage through LG Energy Solution’s Michigan facility, we’re keeping Michigan at the forefront of technology and economic opportunity — creating good-paying jobs, improving reliability for customers and investing in clean energy solutions.”

The companies added that the projects are expected to support Michigan’s clean energy goals and growing electricity demand, including from data centers. According to DTE, battery storage systems tied to Oracle’s data center project in Saline Township alone would be sufficient to meet the utility’s share of the state’s 2030 clean energy standard for battery storage.

Source: Korea Times News