LG Energy Solution's shares have surged following the announcement of a significant energy storage system (ESS) battery supply contract with a major U.S. energy company.
As of 10 a.m. on May 28, LG Energy Solution's stock was trading at 425,500 won, up 42,000 won (10.95%) from the previous trading day, according to the Korea Exchange.
The company announced 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, headquartered in Detroit, Michigan, plans to use this contract to support eight key power grid projects, including the Oracle AI data center project being developed in Saline Township, Michigan.
With growing expectations for the North American ESS market driven by the expansion of AI data centers and increasing demand for renewable energy, investors have reacted positively to LG Energy Solution securing a major utility customer. Analysts suggest that the production of these batteries will primarily take place at the company's facility in Holland, Michigan, enhancing its local supply chain competitiveness.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.