Hanwha unveils comprehensive battery partnership with LG Energy Solution By CIOTechOutlook Team

Hanwha unveils comprehensive battery partnership with LG Energy Solution

CIOTechOutlook Team | Monday, 16 January 2023, 06:35 IST

Announcing their plans to invest in the construction of battery manufacturing facilities in the US are Hanwha Group and LG Energy Solution. Hanwha will be able to dominate the rapidly expanding energy storage market and upcoming Urban Air Mobility company thanks to the collaborative investment.

A memorandum of agreement was inked by the two businesses in Seoul for extensive battery business cooperation for ESS and other clean energy solutions. LGES, three Hanwha Group firms (Hanwha Solutions, which owns Qcells, a manufacturer of sustainable energy), Hanwha Corporation/Momentum, and Hanwha Aerospace—signed the MOU.

In light of the increased demand for American-made Energy Storage Systems following the enactment of the Inflation Reduction Act, the joint investment is anticipated to increase the supply resilience of batteries for the US market. The two businesses will also work together to build cutting-edge ESS solutions specifically for the industrial, commercial, and utility markets. They consist of system balance issues, heat control, and enclosure.

Qcells, the largest silicon-based solar manufacturer in the United States, is owned by Hanwha Solutions. Qcells is at the forefront of the country's transformation to clean energy because it is the only business to set up a comprehensive solar supply chain in the US. Qcells, which is already a global leader in the module manufacturing industry, wants to establish itself as a leading solar and energy storage developer and EPC provider in the US by securing a reliable battery supply and acquiring the best possible product options.

LGES has now established a strong growth platform by strengthening its well-balanced business portfolio of three sectors, including advanced automotive batteries, mobility & IT batteries, and ESS batteries, in the mid- to long-term in the U.S. clean energy market where the fastest growth is anticipated.

By founding a new company called LG Energy Solution Vertech Inc. in 2022, LGES made strides in the ESS System Integration industry. Through LGES, LG Energy Solution Vertech Inc. provides customers with an efficient method for energy storage system integration and a safe battery supply chain.

In the battery collaboration with LGES, the two Hanwha companies, Hanwha Corporation/Momentum and Hanwha Aerospace, will also take part. An industry leader in the production of rocket engines and satellite technology is Hanwha Aerospace. Automation engineering firm Hanwha Corporation/Momentum offers manufacturing facilities for batteries, solar panels, and displays.

Hanwha Momentum will try to give LGES, which is building joint battery factories with major manufacturers like GM, Stellantis, and Honda, with important battery manufacturing facilities. It also plans to enlarge its current factories in Poland, Michigan, and Korea. Additionally, Hanwha Aerospace intends to collaborate with LGES to create specialised batteries for urban air mobility.

"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."