LG Chem wins energy storage system battery deal in Germany

By Yoon Sung-won

LG Chem has won a deal to supply batteries for a massive energy storage system (ESS) project in Germany.

Under the multibillion-won deal announced Monday, the Korean company will exclusively provide batteries for Germany’s fifth-largest power-generation company Steag for an ESS project scheduled to be established in the North Rhein-Westfalen and Saarland regions starting next year. Nidec ASI, Europe’s top ESS company, will build the system using LG Chem’s batteries.

Korea’s leading chemical and materials manufacturing company, LG Chem pledged to lead the global ESS market as well as the electric vehicle sector.

“We have secured a powerful leadership in the global market thanks to the successful supply deal for the ESS project, which is the world’s largest in scale,” said LG Chem’s battery business division head Kwon Young-soo in a statement. “We will win more deals around the world including North America and Europe, aiming at leading the global market both in the ESS and electric vehicle markets.”

LG Chem will supply batteries capable of producing 140 megawatts per hour, which is the world’s highest, for ESS facilities designed for frequency regulation. The new ESS can store and supply electricity to deal with instant changes in power consumption, the company said.

The German government has recently pushed for systems to upgrade existing power generators in order to handle sudden fluctuations in electricity demand and to protect national infrastructure. Accordingly, the country’s major power generation firms have launched massive projects to build ESS facilities for frequency regulation. LG Chem said it anticipates winning further massive deals in the country.

According to the international market analysis agency Navigant Research, the global ESS market is expected to reach 7.3 trillion won by 2020, which accounts for seven-fold growth from 1.05 trillion won this year.

“We will strengthen strategic cooperation with Nidec ASI in the future to actively capture German and European ESS markets,” LG Chem said.