LG Energy Solution spurs US growth with LFP battery rollout
LG Energy Solution aims to further cement its market presence in the United States by starting mass production of lithium iron phosphate, or LFP, batteries for energy storage systems at its plant in Holland, Michigan, in June.
The Korean battery-maker, which became the first major global battery producer to initiate large-scale rollout of ESS-bound LFP batteries in the US, gained a competitive edge by providing stable supplies to local customers and offering on-site support.
LG Energy Solution originally planned to begin mass production of LFP batteries for ESS at a new plant in Arizona in 2026. But it decided to accelerate the schedule as part of strategic rebalancing efforts aimed at maximizing investment efficiency and reducing costs amid a sluggish global EV market and geopolitical uncertainties such as tariffs.
In doing so, LG Energy Solution was able to swiftly convert EV battery production lines at the Michigan plant into ESS production lines and optimize its equipment.
Based on the earlier-than-scheduled production of ESS-bound LFP batteries, the Korean battery-maker plans to respond to rapidly increasing demand for ESS batteries from artificial intelligence data centers and the eco-friendly energy sector.
LG Energy Solution noted that the mass-produced ESS-bound LFP pouch-type batteries based on long cells at the Michigan plant offer high energy efficiency and excellent safety as well as cost competitiveness. The company added that the product has been confirmed for supply to major clients such as Terra-Gen and Delta.
On top of the technological advantages, LG Energy Solution has secured ESS system integration, or SI, capabilities in the US by establishing local subsidiary LG Energy Solution Vertech in 2022. The company offers a total ESS solution, ranging from supply to business planning, design, installation, and battery maintenance and repair. It plans to expand its software services to include real-time monitoring and predictive maintenance to provide unparalleled customer value.
According to market analysis by SNE Research, the global ESS battery market size is expected to grow from 185 gigawatt-hours in 2023 to 1,232 GWh by 2035.
LG Energy Solution, said :
Based on our unmatched technology and complete ESS value chain covering both manufacturing and ESS system integration, we will further strengthen our ESS portfolio,
“Through this, we will grow into a battery company that leads the North American ESS market.”
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LG Energy Solution spurs US growth with LFP battery rollout, source
