LG Energy Solution Signs 5 GWh ESS Supply Contract with Hanwha Q CELLS USA

ESS LFP battery deliveries starting in 2028
Supplied to Hanwha Q CELLS’ U.S. grid-scale projects
U.S. local production from batteries to solar modules

On February 4, LG Energy Solution announced that it had signed a contract with the U.S. subsidiary of Hanwha Solutions’ Qcells Division (Hanwha Q CELLS) to supply energy storage system (ESS) batteries with a total capacity of 5 gigawatt-hours (GWh).

The products to be supplied are lithium iron phosphate (LFP) batteries for ESS, manufactured at the company’s plant in Holland, Michigan, in the United States. Deliveries are scheduled to take place sequentially from 2028 to 2030 and will be supplied to Hanwha Q CELLS’ grid-scale ESS projects in the United States.

Park Jaehong, Corporate Head of Beoteukeu at LG Energy Solution (right), and Hodrick Chris, Head of the EPC Business Unit at Hanwha Qcells, signed a supply contract for an energy storage system (ESS) in the United States and posed for a commemorative photo. Photo by LG Energy Solution

This contract is the second achievement following the ESS project contract with a total capacity of 4.8 GWh announced in May 2024. The proven product competitiveness of both companies and their local manufacturing capabilities, verified through the first contract, laid the foundation for the consecutive agreements.

Based on the production bases they have established in the United States, the two companies also plan to pursue energy infrastructure projects that link batteries with solar modules. LG Energy Solution’s batteries will be produced in the state of Michigan, while Hanwha Q CELLS’ solar modules will be produced in the state of Georgia, making U.S. local production across the entire project scope, from batteries to solar modules, the core of their competitive edge.

This structure is considered a key strength because it enables them to structurally meet the U.S. Inflation Reduction Act (IRA) domestic content requirements, thereby minimizing tariff burdens and risks arising from policy changes. Market observers note that this can increase the likelihood of receiving subsidies and is advantageous for securing project stability and medium- to long-term profitability.

The project is also expected to have a positive impact on job creation in the United States and on strengthening the clean energy supply chain.

Park Jaehong, Head of Vertech at LG Energy Solution, said, “We will strengthen our collaboration with Hanwha Q CELLS by supporting every stage of the project and continue our long-term partnership based on differentiated value.”

Chris Hodrick, Head of the EPC Division at Hanwha Q CELLS, emphasized, “Going forward, Hanwha Q CELLS will provide integrated energy solutions from solar power to ESS, securing a differentiated position in the global energy market.”

This content was produced with the assistance of AI translation services.