*This content was translated by AI.
Hanwha Solution Q Cell Division (Hanwha Q Cell) and LG Energy Solution have signed a large energy storage system (ESS) partnership and are speeding up their efforts to tap into the US ESS market.
Hanwha Q Cell will receive up to 5GWh capacity LFP (lithium iron phosphate) batteries manufactured at LG Energy Solution's Holland plant in Michigan and procure them for ESS projects across the United States. The battery will be installed in the ESS business where Hanwha Q Cells will promote EPC (design, procurement, and construction) for three years from 2028 to 2030.
Demand for electricity has been soaring in the United States due to the recent spread of artificial intelligence (AI) data centers, but concerns over power supply and demand are growing as the expansion of new power sources has been delayed due to lack of power grid infrastructure and flexibility limitations in power generation facilities. Accordingly, ESS, which can reduce the burden on the power grid and buffer the rapid power load fluctuations in the data center, is attracting attention as a key facility in the energy market. Market research firm Wood Mackenzie predicted that a total of 317.9GWh of ESS will be installed in the United States over the next five years.
The deal gives Hanwha Q Cells more discriminatory competitiveness in the U.S. energy market, which secures not only its solar module manufacturing capabilities in the U.S. but also the supply chain of U.S.-made batteries and provides incentives such as AMPC and ITC to its products. In addition, when Solar Hub, the largest silicon-based solar integrated production complex in North America under construction in Georgia, U.S., is completed, Hanwha Q Cells will stably procure modules and ESSs with U.S. manufacturing requirements.
"Based on this partnership with LG Energy Solution, Hanwha Q Cells has laid the foundation for effectively responding to the large-scale ESS demand demanded by the U.S. power market," said an official from Hanwha Q Cells who spoke to this newspaper by phone.
Meanwhile, Hanwha Q Cells has carried out a number of ESS projects as well as solar energy projects across the United States. Hanwha Q Cells signed a battery purchase contract worth a total of 4.8 GWh in May 2024 and completed the installation of the ESS project promoted in the United States.
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*This content was translated by AI.
