Battery-maker LG Chem said Wednesday that it has inked a deal with the world’s largest energy storage system company AES Energy to supply its lithium-ion battery modules.
The ESS is considered a lucrative business and the battery units of Samsung and LG groups are fiercely seeking to gain an upper hand in the global market.
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LG Chem’s battery module for the energy storage system. (LG Chem) |
LG’s latest supply deal is the biggest of its kind in terms of its scale. The maximum battery capacity, according to the deal, will reach a gigawatt hour, which can power 100,000 households, or fully charge 50,000 units of General Motors’ electric vehicle Chevrolet Volt or 90 million smartphones.
The battery capacity surpasses the total capacity of ESS’, which are currently up and running or being constructed in the world, at 917MWh, according to the U.S. Department of Energy
“LG Chem has set a milestone with the latest supply deal for the gigawatt-class batteries,” said Lee Ung-beom, the head of LG Chem’s energy solution company.
LG Chem has scored the highest points in assessments for technological competitiveness of the world’s lithium-ion battery manufacturers in 2013 and 2015, according to research firm Navigant Research.
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LG Chem‘s rack system for ESS battery modules. (LG Chem) |
The market researcher also forecast that the global ESS market will grow to 15.6 trillion won ($13.2 billion) by 2020 from 1.9 trillion won this year.
Aiming to cement its lead in the ESS battery sector, the Seoul-based company has been expanding its partnerships with global players in the energy segment including Swiss power technology firm ABB, Japanese renewable energy firm GPD, and North America’s largest power company Duke Energy, and Germany’s fifth largest power generator Steag.
It is also targeting both developed and less-developed nations where the demand for the ESS tech has been increasing in line with the global governments’ efforts to boost the efficiency of energy use.
LG Chem has participated in projects to build ESS’ in Hokkaido, Japan, Reunion, Africa, and Alaska, U.S.
By Kim Young-won (
wone0102@heraldcorp.com)
