LG Energy Solution to Expand Production in Michigan and U.S.

LG Energy Solution is expanding its production capabilities in Michigan and elsewhere through a partnership with Hanwha Group. // Courtesy of LGES
LG Energy Solution is expanding its production capabilities in Michigan and elsewhere through a partnership with Hanwha Group. // Courtesy of LGES

Seoul, South Korea’s Hanwha Group and LG Energy Solution (LGES), with operations in Holland, announced they will invest in building battery production facilities in the U.S.

The two companies signed a memorandum of understanding (MOU) in Seoul for comprehensive battery business cooperation for energy storage system (ESS) and other clean-tech energy solutions.

The MOU was signed by LGES and three subsidiaries under Hanwha Group — Hanwha Solutions, owner of clean energy manufacturer Qcells, Hanwha Corp./Momentum, and Hanwha Aerospace.

The joint investment is expected to boost battery supply resiliency for the U.S. market amid the growing need for American-made ESS’ following the passage of Inflation Reduction Act. The two companies will also pursue technology cooperation for developing advanced ESS solutions tailored for commercial, industrial, and utility market. They include enclosure, heat management and other balance of system.

“We have decided to collaborate with LG Energy Solution, which has several large-scale manufacturing facilities being constructed in U.S., to target the U.S. ESS market boasting fast growth thanks to green energy policies,” says Hanwha Group. “Our aim is to maximize synergy at home and abroad by promoting partnerships in various fields, such as supplying battery manufacturing equipment and developing special-purpose batteries.”

Hanwha Solutions owns Qcells, a silicon-based solar manufacturer. Claiming to be the only company to establish a complete solar supply chain in the U.S., Qcells aims to lead the country’s clean energy transition.

With the MoU, LGES has now secured another stable market demand in the mid- to long-term in the U.S. clean energy market where the fastest growth is expected, and thereby established a solid growth platform by reinforcing its well-balanced business portfolio of three sectors: advanced automotive batteries, mobility and IT batteries, and ESS batteries.

In 2022, LGES advanced into the field of ESS system integration by establishing a new corporation, LG Energy Solution Vertech. Inc., which offers customers a streamlined approach to energy storage system integration and a secure battery supply chain through LGES.

The other Hanwha subsidiaries — Hanwha Corp./Momentum and Hanwha Aerospace — will also participate in battery cooperation with LGES. Hanwha Aerospace is an aerospace and defense company manufacturing rocket engine and satellite technology along with batteries, solar panels, and display.

Hanwha Momentum will seek to supply key battery manufacturing facilities for LGES, which is constructing joint battery factories with global automakers such as GM, Stellantis, and Honda. Its existing factories in Korea, Poland, and Michigan are also scheduled to expand. Hanwha Aerospace is also planning to work with LGES to develop special-purpose batteries for Urban Air Mobility.

“Our partnership with Hanwha Group is expected to take the competitiveness of each company’s battery-related businesses a step further,” says LG Energy Solution. “By signing this MoU with leading, like-minded energy companies, we put ourselves in the best possible position to successfully expand the influence of our solar and ESS businesses in the U.S., and we will do our very best to provide customers with comprehensive green energy solutions.”