LG Energy Solution wins a battery supply contract worth billions of Korean won for Google's solar energy project
LG Energy Solution announced that it has secured a battery supply contract worth billions of Korean won from Google to provide batteries for its solar-related energy infrastructure project. This project is jointly developed by Google and Cypress Creek Energy, with plans to operate in 2029 and an initial energy storage installation of 2 gigawatt-hours. LGES will supply lithium iron phosphate batteries produced by its U.S. subsidiary Vertech to expand U.S. energy storage capacity and address the downturn in the electric vehicle market
South Korea's leading battery manufacturer LG Energy Solution (LGES) announced on Wednesday that it will provide batteries for the solar-related energy infrastructure project of American internet giant Google, with a transaction value reaching hundreds of billions of Korean won.
On Tuesday local time, Google and independent renewable energy producer Cypress Creek Energy jointly announced the Steel River Energy Center, a large solar project, and announced that it will use batteries from LG Energy Solution.
Google stated in a press release that the project is planned to be operational by 2029, with an initial energy storage system capacity of 2 GWh, which will later be expanded to 2.9 GWh.
LG Energy Solution plans to supply lithium iron phosphate batteries produced at its U.S. factory for the project.
Google's press release stated: "This project will use photovoltaic modules produced by First Solar, a U.S.-based company, as well as the battery energy storage system from LG Energy Solution Vertech. The entire energy storage system will be assembled in the United States, with all battery cells produced in North America, and the vast majority manufactured by U.S. factories."
LG Energy Solution Vertech is LG Energy Solution's U.S. subsidiary.
The Steel River Energy Center is an integrated solar and storage project led by Google to meet the rapidly growing electricity demand driven by data center expansions and other factors.
Affected by the long-term downturn in the electric vehicle market, LG Energy Solution is expanding its energy storage battery production capacity in the U.S. to hedge against the downward pressure on its electric vehicle business.
Recently, the company has started production of energy storage cells at two joint venture factories, one in partnership with General Motors and the other being the L-H Battery Company established in collaboration with Honda.
In addition, the company plans to start production of energy storage cells at its wholly-owned battery factory in Michigan later this year
