Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
LG Energy Solution to supply ESS batteries to Hanwha Qcells
Park Jae-hong, right, CEO of LG Energy Solution Vertech, shakes hands with Chris Hodrick, CEO of Qcells EPC, during a signing ceremony in the United States last month. Courtesy of LG Energy Solution
By Nam Hyun-woo
LG Energy Solution said Wednesday it has signed a multiyear agreement to supply batteries for energy storage system (ESS) projects to the U.S. arm of Hanwha Solutions, expanding cooperation to localize production and reduce exposure to tariffs and policy risks.
Industry sources estimate the contract’s value at around 1.5 trillion won ($1.15 billion).
Under the deal, LG Energy Solution’s wholly owned subsidiary, LG Energy Solution Vertech, will provide 5 gigawatt-hours of lithium iron phosphate battery energy storage systems to Hanwha Qcells USA for utility-scale solar projects between 2028 and 2030. The agreement also includes lifecycle services for the storage systems.
The deal builds on earlier battery purchase contracts signed in May 2024, under which Qcells secured 4.8 gigawatt-hours of battery energy storage systems from LG Energy Solution Vertech for U.S. projects.
The ESS batteries will be produced at LG Energy Solution’s Michigan facility, while Hanwha Qcells will manufacture solar modules in Georgia, allowing the entire value chain to be localized in the United States.
The U.S.-based production meets domestic content requirements under the Inflation Reduction Act, making the products eligible for federal subsidies while reducing risks from policy changes and tariffs.
“We are committed to supporting projects throughout their lifecycles to enable the long-term success of our customers’ energy storage programs, and we’re looking forward to seeing the impact our joint project portfolio has on the energy grid," said Park Jae-hong, CEO of LG Energy Solution Vertech.
"This collaboration reflects our shared commitment to building clean energy the right way: creating American jobs, strengthening supply chains, and delivering reliable, affordable power for communities across the country," said Chris Hodrick, CEO of Qcells EPC.
Qcells operates the largest solar panel facility in the U.S., located in Dalton, Ga., and is constructing a second plant in Cartersville, Ga., to produce ingots, wafers, cells and finished panels. Once fully operational, the company’s annual U.S. production is expected to reach 8.4 gigawatts, which is enough to supply electricity to more than 1.3 million homes.