SEOUL, February 04 (AJP) - LG Energy Solution (LGES) and Hanwha Qcells have joined hands to strengthen their position in the fast-growing U.S. market for large-scale energy storage systems.
Industry sources said Wednesday that Hanwha Qcells plans to procure up to 5 gigawatt-hours of lithium iron phosphate (LFP) batteries from LGES’s plant in Holland, Michigan. The batteries will be deployed in U.S. ESS projects where Hanwha Qcells will oversee engineering, procurement and construction between 2028 and 2030.
The arrangement also covers long-term operation and maintenance services, signaling a strategic partnership rather than a one-off supply agreement.
The cooperation comes as structural shifts reshape the U.S. power market. Rapid growth in AI-driven data centers and broader electrification are boosting electricity demand, while permitting and transmission constraints slow the addition of new generation capacity.
As a result, large-scale storage systems that can balance load fluctuations and support grid stability are emerging as critical infrastructure.
Consultancy Wood Mackenzie forecasts nearly 318 GWh of new ESS installations in the United States over the next five years.
Hanwha Qcells is emphasizing local sourcing to enhance eligibility for U.S. incentives such as advanced manufacturing and investment tax credits, while strengthening compliance with domestic content requirements.
Once its solar manufacturing complex under construction in Georgia — dubbed the Solar Hub — is completed, the company expects to operate a localized production network covering both solar modules and storage solutions.
Industry officials describe the partnership as a role-based strategy in which Hanwha Qcells focuses on project development, EPC services and solar supply, while LGES provides U.S.-based battery manufacturing and operational support.
LFP batteries are widely viewed as suitable for large-scale ESS due to safety and longer cycle life, making them attractive for grid and data center applications.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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