Hanwha to Invest in Battery Production Facilities With LG Energy Solution in US

Hanwha Group and LG Energy Solution announced they will invest in building battery production facilities in the United States.

The joint investment will pave the way for Hanwha to lead the rapidly-growing energy storage market and future Urban Air Mobility business.

The two companies signed a memorandum of understanding in Seoul for comprehensive battery business cooperation for ESS and other clean-tech energy solutions.

The MOU was signed by LGES and three subsidiaries under Hanwha Group - Hanwha Solutions, owner of clean energy manufacturer Qcells, Hanwha Corporation/Momentum and Hanwha Aerospace.

The joint investment is expected to boost battery supply resiliency for the US market amid the growing need for American-made Energy Storage System following the passage of Inflation Reduction Act.

The two companies will also pursue technology cooperation for developing advanced ESS solutions tailored for commercial, industrial and utility market. They include enclosure, heat management and other balance of system.

With the MoU, LGES has now secured another stable market demand in the mid- to long-term in the U.S. clean energy market where the fastest growth is expected, and thereby established a solid growth platform by reinforcing its well-balanced business portfolio of three sectors: advanced automotive batteries, mobility & IT batteries, and ESS batteries.

"We have decided to collaborate with LG Energy Solution, which has several large-scale manufacturing facilities being constructed in U.S., to target the U.S. ESS market boasting fast growth thanks to green energy policies," said Hanwha Group. "Our aim is to maximize synergy at home and abroad by promoting partnerships in various fields, such as supplying battery manufacturing equipment and developing special-purpose batteries."

"Our partnership with Hanwha Group is expected to take the competitiveness of each company's battery-related businesses a step further," said LG Energy Solution. "By signing this MoU with leading, like-minded energy companies, we put ourselves in the best possible position to successfully expand the influence of our solar and ESS businesses in the U.S., and we will do our very best to provide customers with comprehensive green energy solutions."