LG Energy Solution is collaborating with global private equity firm Kohlberg Kravis Roberts (KKR) for its battery energy storage system (BESS) business, causing its stock price to rise in early trading on the 6th. (☞[Exclusive] LG Energy Solution and KKR join forces to target the '40 trillion' BESS market)
LG Energy Solution shares traded at 388,500 won in the KOSPI market at 9:55 a.m. on that day, up 0.52% (2,000 won) from the previous day. The price dropped to 381,000 won early in the session but then turned upward.
The news that LG Energy Solution established a joint venture named 'Korea Gigafactory' with KKR for the BESS business seems to have stimulated investor sentiment.
BESS is a device capable of storing excess generated power, and the government plans to sequentially select operators to run a total of 20 gigawatts (GW) of BESS by 2038. The market size is estimated to approach 40 trillion won.
The government plans to select design, procurement, and construction (EPC) contractors in batches of 540 megawatts (MW) over four years for the BESS project. Last month, it selected eight companies, including Korea Southern Power (KOSPO), in the first round, and the second round of contractor selection will begin in September. Once a contractor is selected, LG Energy Solution will supply lithium iron phosphate (LFP) products and KKR plans to provide funding in the form of mezzanine finance.