By Kim Yoo-chul
LG Chem, Korea’s biggest chemicals firm, has signed another battery deal, regarded as ``meaningful’’ in terms of the sustainability of its business.
But this time, the agreement is not about batteries for electric vehicles but an even more profitable one. LG said it has signed a long-term battery supply contract with ABB, a leading engineering company based in Switzerland.
Under the agreement, LG Chem is going to supply lithium-ion batteries and battery management systems for energy-storage projects directly handled by ABB.
``The latest deal marks LG Chem’s advance into the growing energy storage system (ESS) market in Europe,’’ said C.S. Song, a company spokesman, Monday.
``The agreement will become a cornerstone for LG Chem to get a greater stake in the highly-lucrative ESS-related market,’’ added the spokesman. Song, however, declined to give further financial details such the terms of the contracts.
Last year, Southern California Edison (SCE) selected LG to provide battery packs for a pilot program involving ESS for residential and small commercial applications.