On the 25th (local time), LG Energy Solution announced that it has entered into a strategic partnership with global energy management company Delta Electronics.
Through this collaboration, LG Energy Solution plans to supply a total of 4 gigawatt-hours (GWh) of home ESS batteries over a five-year period from 2025 to 2030. This amount is enough power for more than approximately 400,000 dwellings (based on four people per household) to use in a day. Additionally, they decided to seek collaboration not only for home applications but also for power grids and the commercial ESS market in the future.
The batteries to be supplied by LG Energy Solution are planned to be produced locally in the United States. LG Energy Solution has stated that it will begin production of LFP (lithium iron phosphate) batteries for ESS starting in the second half of this year at its Holland, Michigan, plant.
This collaboration is said to have been effective due to LG Energy Solution's 'local production capabilities' in the United States. A company official noted, "From next year, import tariffs on Chinese ESS batteries are expected to increase, and there are also considerable forecasts for further increases. As a result, the market demand for locally produced batteries in the United States is likely to increase more rapidly."
Delta Electronics plans to unveil next-generation all-in-one LFP products equipped with hybrid inverters (a system that integrates solar power generation and ESS to efficiently store and manage electricity) for dwellings in the United States within the second half of this year and to begin full-scale sales.
According to global market research firm Fortune Business Insights, the market size for home ESS in the United States is projected to grow from $896.99 million (approximately 1.2796 trillion won) in 2022 to $4.74062 billion (approximately 6.763 trillion won) by 2030.
Kim Hyung-sik, head of the ESS battery division at LG Energy Solution, stated, "We will provide differentiated customer value and competitive products through the high-efficiency all-in-one solution that combines the technologies of both companies, paving the way for a sustainable energy environment in American dwellings."
Mike Wang, general manager of the PVI division at Delta Electronics, said, "Through this collaboration, we will support households in effectively producing and storing renewable energy and contribute to reducing energy expenses and achieving a sustainable future."