By Kim Yoo-chul
LG Chem said Sunday that it had signed a memorandum of understanding with three US companies to supply its batteries for energy storage solution (ESS) systems.
The U.S. government is increasing its subsidies for ESS systems to cut costs and for better energy management, providing new business opportunities for major battery suppliers including LG as battery technology is key for ESS systems.
Gexpro, Ideal Power and Geli are the three new LG partners in the ESS business, according to a statement by the Korean firm.
Under the partnership, LG Chem will supply batteries for ESS systems being developed by Gexpro with a capacity of 45 kilowatts per hour (KWh).
These ESS systems will be supplied to schools, hospitals, oil stations and office buildings in the United States from next month, said LG.
It said the Gexpro-developed ESS with LG Chem is mostly fitted for "peak-shift," helping customers save electricity bills by up to 30 percent.
An ESS for peak-shift enables clients to use more electricity if necessary with the electricity that is saved during the night.
An LG Chem spokesman declined to unveil financial figures about the deal. Gexpro, a former subsidiary of General Electric, was acquired by Rexel of France in 2006.
It has more than 80 distributors in the United States. LG Chem said both companies also agreed to let LG use Gexpro-owned sales networks for promotional campaigns.
LG Chem said the latest agreement will help it lead its chief rivals in the heated race for the ESS business. LG expects the market in North America to grow at an annual rate of 70 percent from this year until 2020.
"LG Chem's ESS product portfolio has been expanded into commercial channels from the public and household sectors," said Kwon Young-soo, head of the company's battery division, in a statement.
In Europe, the LG unit and Siemens of Germany signed an MOU in response to growing demand for ESS, which are increasingly needed to stabilize distribution grids.
LG Chem said Sunday that it had signed a memorandum of understanding with three US companies to supply its batteries for energy storage solution (ESS) systems.
The U.S. government is increasing its subsidies for ESS systems to cut costs and for better energy management, providing new business opportunities for major battery suppliers including LG as battery technology is key for ESS systems.
Gexpro, Ideal Power and Geli are the three new LG partners in the ESS business, according to a statement by the Korean firm.
Under the partnership, LG Chem will supply batteries for ESS systems being developed by Gexpro with a capacity of 45 kilowatts per hour (KWh).
These ESS systems will be supplied to schools, hospitals, oil stations and office buildings in the United States from next month, said LG.
It said the Gexpro-developed ESS with LG Chem is mostly fitted for "peak-shift," helping customers save electricity bills by up to 30 percent.
An ESS for peak-shift enables clients to use more electricity if necessary with the electricity that is saved during the night.
An LG Chem spokesman declined to unveil financial figures about the deal. Gexpro, a former subsidiary of General Electric, was acquired by Rexel of France in 2006.
It has more than 80 distributors in the United States. LG Chem said both companies also agreed to let LG use Gexpro-owned sales networks for promotional campaigns.
LG Chem said the latest agreement will help it lead its chief rivals in the heated race for the ESS business. LG expects the market in North America to grow at an annual rate of 70 percent from this year until 2020.
"LG Chem's ESS product portfolio has been expanded into commercial channels from the public and household sectors," said Kwon Young-soo, head of the company's battery division, in a statement.
In Europe, the LG unit and Siemens of Germany signed an MOU in response to growing demand for ESS, which are increasingly needed to stabilize distribution grids.
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