LG Energy Solution announced on the 1st that it has begun large-scale production of lithium iron phosphate (LFP) batteries for energy storage systems (ESS) at its factory in Holland, Michigan. Among major global battery manufacturers, LG Energy Solution is the only one to have launched a large-scale production system for ESS LFP batteries in the United States.
The product manufactured by LG Energy Solution is a pouch-type LFP battery designed specifically for ESS, characterized by excellent energy efficiency and safety. This product is already being supplied to companies such as Terra-Gen and Delta.
LG Energy Solution assessed that the large-scale production of LFP batteries for ESS is the result of a "strategic rebalancing." As external management uncertainties increased due to a temporary slowdown in the global electric vehicle market and changes in policies such as tariffs in major countries, LG Energy Solution is implementing strategic rebalancing to enhance investment efficiency and reduce unnecessary expenses.
Initially, LG Energy Solution planned to construct a new factory in Arizona for the production of LFP batteries for ESS, with mass production set to begin in 2026. However, it quickly converted part of its existing Michigan Holland factory, which has been producing batteries for electric vehicles, to an ESS production line and optimized the facilities. This allowed the company to begin mass production earlier than originally planned.
LG Energy Solution stated, "Currently, we are in discussions for battery supply agreements for ESS with numerous customers in North America," and added, "We will continue to lead in realizing customer value based on our top-tier technology and rapid local response."