LG Energy signs MOU to supply ESS to Israeli firm

SEOUL, Oct. 27 (Yonhap) -- LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, said Tuesday it has signed a memorandum of understanding (MOU) to supply energy storage systems (ESS) to an Israeli energy company for its projects in Europe and the United States.

Under the MOU signed with Energix Renewable Energies Ltd., LGES will supply 2 gigawatt-hours (GWh) of ESS capacity for the Israeli company's projects in the two markets over the next 24 months, LGES said in a press release.

The two companies will also consider increasing the supply capacity to 4.5 GWh in those markets, it said.

"We look forward to exploring opportunities to deploy high-quality energy storage solutions across our project pipeline and accelerate the expansion of renewable energy in our core markets," Energix Chief Executive Asa Levinger said in the release.

LGES has recently secured a series of ESS contracts in North America, driven by rising demand for energy storage solutions for artificial intelligence (AI) data centers, power grids and renewable energy projects.

The latest agreement is expected to help the company expand its presence in the European ESS market.

Battery makers have stepped up efforts to secure ESS battery deals to offset sluggish demand for electric vehicle (EV) batteries amid a prolonged downturn in the EV market.

LGES operates seven battery plants in North America -- six in the United States and one in Canada. Five produce batteries for both ESS and EVs, while the other two manufacture EV batteries only. An eighth plant is under construction in Arizona and is scheduled for completion by the end of this year.

The company also operates plants in South Korea, Poland, China and Indonesia.

kyongae.choi@yna.co.kr
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