DTE Energy in Detroit says it’s investing $1.6 billion in Michigan’s clean energy future by partnering with Troy’s LG Energy Solution Vertech to develop battery energy storage systems across the state.
The procurement agreement will support eight projects with battery systems delivered over a two-year period, generating an estimated $2.3 billion in total economic impact while creating good-paying jobs in Michigan, improving grid reliability, and meeting the state’s clean energy goals.
The eight energy storage projects are expected to deliver 1.5 gigawatts or 6 gigawatt hours of battery storage, a technology designed to enhance grid reliability.
The battery energy storage systems will store electricity during times of excess generation and distribute the power to customers as needed to meet peak periods of demand. This should reduce strain on the grid and decrease the need to start and stop generation as demand fluctuates.
“DTE is committed to building a bright future for Michigan,” says Joi Harris, president and CEO of DTE Energy. “By working with LG Energy Solution Vertech to bring more battery storage online through their Holland manufacturing facility, we’re keeping Michigan at the forefront of technology and economic opportunity — creating good-paying jobs in communities while driving responsible growth, improving reliability for our customers, and investing in clean energy solutions.”
DTE says its commitment to responsible data center development is providing a significant boost to battery energy storage in the state, making the electric grid cleaner, more reliable, and more resilient.
The utility says it has identified the resources needed to reliably serve its new data center customers without compromising service for existing customers, while remaining in compliance with Michigan’s Renewable Portfolio Standard (RPS) and Clean Energy Standard (CES).
In the case of DTE’s approved contract for the Oracle data center in Saline Township, the battery energy storage systems that Oracle is funding are, by themselves, sufficient to meet DTE’s portion of the state’s 2030 clean energy standard for battery storage, according to DTE.
“Michigan is a key U.S. manufacturing region for our company, where many of our colleagues live and work,” said Jaehong Park, president and CEO of LG Energy Solution Vertech, the U.S. energy storage division of LG Energy Solution. “We’re thrilled to work with DTE to bring Michigan-made energy storage to our communities. As more US-made energy storage projects are added to the energy grid, we’re building opportunities for advanced roles in the state that support our national energy needs.”
The battery storage projects are expected to directly support 1,800 hourly and salaried jobs at LG Energy Solution’s manufacturing plant in Holland and more than 350 additional jobs across construction and operations, while also driving broader economic benefits for local communities.
Both companies say the agreement represents “a significant step forward in building a more resilient, sustainable, and economically vibrant Michigan.”
“In today’s energy-dense, high-data-need AI environment, more efficient energy production and data centers are critical infrastructure,” says Sandy K. Baruah, president and CEO of the Detroit Regional Chamber. “I applaud DTE Energy and their partners for leading the way and for partnering with organizations like the chamber to ‘re-set’ the conversation about data centers and for our shared commitment to get this right. Michigan’s prosperity depends on it.”
