
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 related to the increase in renewable energy power generation.
According to the latest quarterly report disclosed by the Electronic Disclosure System of the Korea Financial Supervisory Service, LG Energy Solution’s ESS solution company LG Energy Solution Vertech had sales of 1.097 trillion won (US$833.5 million) from the first quarter to the third quarter of this year. last year. Compared with 282 billion won in the same period last year, it increased by 289.0%. In addition, in the third quarter of last year, the company turned a profit and achieved a net profit of 81 billion won, compared with a net loss of 93 billion won in the same period last year.
In the United States, LG Energy Solution is expanding its presence in the electric vehicle battery market through investments in production facilities. The company has established joint ventures with major automakers such as Hyundai Motor Company, General Motors, Stellantis, Honda and others in the United States, becoming a customer of eight of the top ten automakers.
Additionally, the company is stepping up efforts to capture the U.S. ESS market and plans to triple its ESS unit revenue within five years.
According to forecasts from the U.S. Energy Information Administration (EIA) and market research company Statista, the U.S. ESS market is expected to grow to US$8.261 billion by 2025.
LG Energy Solutions decided to invest 3 trillion won at the beginning of last year to build a dedicated ESS factory in Arizona, USA, with a production capacity of 16GWh, and aims to start mass production by 2026.
In February 2022, LG Energy Solution Vertech was established after acquiring NEC Energy Solutions, an American ESS system integration (SI) expert. 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 United States, with a total capacity of 10 GWh as of the end of last year. This capacity is the combined total of more than a dozen grid projects ordered to date. All projects involve lithium-ion batteries and system control systems manufactured by LG Energy Solution, and implement Vertech’s proprietary software Eros.
At the same time, according to market research company SNE Research, LG Energy Solution ranked fourth in the global ESS market last year, with a market share of 7.5%.