"EV Next is ESS"‥LG Energy Solution Targets Home Markets in the US, Germany, and Australia

On the 21st, visitors are touring the LG Chem exhibition hall at the battery industry exhibition 'InterBattery 2020' held at COEX in Gangnam-gu, Seoul. Marking its 8th year, InterBattery showcases core technologies of 'K-Battery,' including batteries for automobiles, smartphones, energy storage systems (ESS), and key materials. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Park So-yeon] LG Energy Solution will unveil next-generation home batteries in global markets such as Germany, the United States, and Australia in January next year. Alongside eco-friendly electric vehicle batteries, the company plans to actively target the rapidly growing overseas home energy storage system (ESS) market.

On the 27th, LG Energy Solution announced that it will launch the new home ESS line 'LG RESU Prime,' boasting innovative energy usage, worldwide in January next year. LG RESU Prime features an innovative design that maximizes flexibility and consists of the LG RESU10H Prime and LG RESU16H Prime models. RESU stands for Residence Energy Storage Unit and is LG Energy Solution's home battery solution.

An LG Energy Solution official explained, "The new LG RESU Prime products provide large-capacity, high-output batteries that match the industry's best energy density, while actively pursuing responsible cobalt procurement to enable sustainable energy use. The new range, which has passed all safety tests conducted under the harshest conditions, has been proven to enhance safety while adding flexibility in installation, handling, and scaling up."

Following the LG RESU Prime lineup, LG Energy Solution plans to launch a completely new home battery concept called LG RESU Flex in the second half of next year. LG RESU Flex is a flexible product that allows battery systems to be configured with desired capacity and design by assembling battery units in various ways. It is easy to install and expand. ESS is a useful solution in areas prone to frequent power outages due to gusts, fires, earthquakes, and other causes. It can supply electricity as a backup when power supply is cut off. Like the portable batteries we commonly use, it stores renewable energy such as solar power in advance and utilizes it when needed later. It can also provide economic benefits by storing electricity during cheaper nighttime hours and using it during expensive daytime hours. Not only does it protect the environment with renewable energy, but it also allows for stable electricity supply by predicting usage patterns that vary greatly by season and time of day, which is why more countries worldwide are adopting ESS. In particular, demand for home ESS is increasing mainly in Europe and North America.

The global ESS market is expected to grow more than 12 times from $9.1 billion (about 10.85 trillion KRW) in 2019 to $111.8 billion by 2035. Market research firm Lux Research forecasts that the combined battery market for electric vehicles (EV), ESS, and portable devices will grow more than 18 times from 164 GWh in 2019 to 3,082 GWh in 2035. In terms of value, it will expand from $59 billion to $553 billion. Among these, ESS is expected to be the second-largest market after electric vehicles. Especially, home ESS is anticipated to have a compound annual growth rate (CAGR) of 76% over the next three years, comparable to the 80% CAGR of electric vehicles. The high growth of the ESS market is believed to be influenced by steadily decreasing battery prices and the perception of ESS as a profitable business.

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