LG Energy Solution secures $1.8 bil. ESS deal with DTE Energy

LG Energy Solution's U.S. subsidiary, LG Energy Solution Vertech, has signed a significant $1.8 billion supply agreement with DTE Energy. The deal is for the development of Michigan-made battery energy storage systems (ESS) across the state, covering a substantial 6 gigawatt-hours (GWh) of storage capacity.

Under the terms, LG Energy Solution Vertech will supply ESS for eight projects over the next two years, providing a combined 1.5 gigawatts of battery storage. These systems are designed to enhance grid reliability and facilitate clean energy deployment by storing electricity during periods of excess generation and supplying power during peak demand, thereby reducing grid strain.

Park Jae-hong, CEO and president of LG Energy Solution Vertech, highlighted Michigan's importance as a manufacturing region for the company, while DTE Energy's president and CEO, Joi Harris, emphasized the partnership's role in advancing Michigan's technology, economic opportunities, and clean energy solutions. The battery cells for these projects will be produced at LG Energy Solution's facilities in Michigan, as well as other manufacturing sites in the U.S. and Canada.

The companies stated that these projects are crucial for supporting Michigan’s clean energy goals and addressing growing electricity demand, including that from data centers. Notably, DTE’s approved contract for the Oracle data center in Saline Township indicates that the ESS funded by Oracle alone will fulfill DTE’s portion of Michigan’s 2030 battery storage clean energy target. Industry observers anticipate that LG Energy Solution’s ESS batteries will likely be utilized at the Oracle-OpenAI data center site in Michigan.