This image shows an ESS facility consists of JF2 AC Link. (LG Energy Solution)
This image shows an ESS facility consists of JF2 AC Link. (LG Energy Solution)

Leading Korean battery maker LG Energy Solution said Friday its US subsidiary signed a deal to provide electric storage systems to a private equity firm there, in a move to accelerate its presence in the US market.

Under the deal, LG Energy Solution Vertech will produce the 7.5 gigawatt-hour capacity energy storage system, or ESS, for Excelsior Energy Capital from 2026. The 7.5 GWh capacity ESS is enough to power 750,000 four-person households for a day.

The company did not specify the scale of the contract, but it is expected to be around 2 trillion won ($1.4 billion) based on its capacity.

The product to be supplied is the JF2 AC Link system, which contains LG’s high-capacity lithium iron phosphate long cell batteries. LG Energy Solution Vertech will also offer the systematic support required to operate the facility.

“We selected LG Energy Solution Vertech because of their ability to support us throughout the project life cycle with exceptional services, software and products. We also gain access to the full benefits of US manufactured products with this partnership,” said Excelsior Co-Founder and Partner Anne Denman.

LG Energy Solution, suffering from a recent slowdown in the electric vehicle battery market, is banking on the growing global ESS market, which is projected to show average annual growth of over 20 percent by 2028.

“We place great value in being a long-term partner to our customers, supporting projects throughout their life cycles with services and software that enable success well beyond project commissioning. We look forward to seeing the projects under this agreement make meaningful, lasting impacts on the energy grid,” said Kim Hyung-sik, vice president and ESS battery division head at LG Energy Solution.