LG Energy Solution's shares have surged following the announcement of a substantial energy storage system (ESS) battery supply contract with a major U.S. energy company.
As of 10 a.m. on the Korean Exchange, LG Energy Solution's stock rose by 42,000 won (10.95%) to 425,500 won compared to the previous trading day.
The company announced that it has signed a contract with DTE Energy, Michigan's largest integrated energy company, for the supply of ESS batteries totaling 6 gigawatt-hours (GWh). The contract is valued at $1.6 billion (approximately 2.4 trillion won).
DTE Energy, based in Detroit, Michigan, is a large power and energy company. The contract will support eight key power grid projects, including the Oracle AI data center project being developed in Saline Township, Michigan.
With growing demand for AI data centers and renewable energy integration, expectations for growth in the North American ESS market are rising. Investors view LG Energy Solution's acquisition of a major utility customer positively. Notably, the supply will be produced primarily at the company's manufacturing facility in Holland, Michigan, enhancing its local supply chain competitiveness.
* This article has been translated by AI.
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