LG Energy Solution inks estimated $1 bn deal for ESS batteries with Hanwha QCells

LG Energy Solution Ltd, the world's third-largest battery maker, disclosed it had signed a contract with to supply 4.8 gigawatt-hours (GWh) of energy storage system (ESS) batteries to US-based Hanwha QCells, Korean media reported.

Under the deal, the supply will last until October 1, 2026, with Hanwha QCells expected to install the batteries at its plant in La Paz County, Arizona. Independently, Hanwha QCells announced the company had finalized the construction of a 3.3 GW solar module production line at its Cartersville factory in Georgia, USA.

LGES, which disclosed the deal in a filing to South Korea's financial regulator, did not reveal financial terms of the deal, but media and industry estimates peg the value at ~$1 billion, making it the largest single power grid ESS project conducted by LGES.

LGES and South Korea's Hanwha Group had last year signed a comprehensive agreement to invest in building battery production facilities in the US. The two companies had agreed to pursue technology cooperation for developing advanced ESS solutions tailored to the commercial, industrial and utility markets. Their agreement also covered enclosure, heat management and other balance of system.