LG Energy Solution surged more than 12% in early trading on the 28th. Buying is seen gathering after news that it signed a large supply contract in the North American energy storage system (ESS) market.
As of 9:27 a.m. on the 28th, LG Energy Solution was trading on the Korea Exchange at 431,000 won, up 47,500 won (12.39%) from the previous session.
LG Energy Solution said on the 28th that it signed a contract on the 27th (local time) to supply ESS batteries totaling 6 gigawatt-hours (GWh) to DTE Energy, the largest integrated energy company in Michigan, the United States. The contract size and supply period are about $1.6 billion (about 2.4 trillion won) and about two years, respectively.
LG Energy Solution is expanding its North American production foothold. They include the Holland and Lansing plants in Michigan, NextStar Energy in Canada, the Ultium Cells Tennessee plant, and a joint plant with Honda in Ohio.
By the end of this year, it plans to expand global ESS production capacity to more than 60 GWh and supply about 50 GWh of that to North America.