LG Energy Solution (LGES) shared its growth strategy for its energy storage system (ESS) division during the Venetian Convention and Expo Center in Las Vegas. The South Korean company aims to expand its market in the United States and triple its global sales.
“With our production excellence and differentiated technologies, we are going to triple global revenues with ESS products in 5 years,” said Seungse Chang, head of the ESS business division at LG Energy Solution. “We have already decided to invest USD 2.3 billion in the U.S., and even more investment is to come. We believe that our journey here will speed up clean energy transition in the U.S.”
LGES’ shared four strategies for its expansion in the U.S. market, covering battery production to sales and service offerings. First, the company plans to secure a large-scale ESS battery production base in the United States. It already secured a location for the plant at Queen Creek, Arizona. The LGES ESS battery production plan is expected to start production by the first quarter of 2026. It will have an initial production capacity of 16 GWh.
The South Korean company aims to reap the benefits of the Inflation Reduction Act (IRA) in the United States by localizing the Arizona battery plant’s entire supply chain. By qualifying for the IRA, LGES can offer customers an extra 10% tax credit.
LGES plans to offer energy storage units with advanced lithium iron phosphate (LFP) battery cells for longer life cycles, higher efficiency, and excellent reliability. The Asian company claims it will be the only LFP battery producer for ESS. The company plans to provide customers with top-notch service by becoming a fully integrated system solution provider for ESS. LGES’ service will include DC-AC integration and software-as-a-service products.
Tesla Energy will likely be one of the South Korean company’s main competitors in the U.S. ESS market. Both companies recently launched new residential energy storage units: the Tesla Powerwall 3 and the LGES battery system with inverter.
According to Elon Musk, the Tesla Powerwall 3 is optimized for easier installation and high power. Similarly, LGES’ new residential ESS integrates a battery system with an inverter for faster installation. The new LGES energy storage unit has a total capacity of 19.2 or 32 kilowatt hours, depending on its battery modules.