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 revealed 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, 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 increasing demand for AI data centers and renewable energy integration, there is growing optimism about the North American ESS market. Investors view LG Energy Solution's acquisition of a large utility customer positively. Notably, the supply will be produced primarily at the company's facility in Holland, Michigan, enhancing its local supply chain competitiveness.
* This article has been translated by AI.
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