Hanwha and LG Energy Solution (LGES) have announced a joint investment in energy storage facilities in the United States. This partnership will position Hanwha as a leader in the expanding energy storage market and in the Urban Air Mobility sector.
The companies signed a Memorandum of Understanding in Seoul for cooperation in battery business for ESS (energy storage systems) and other clean energy solutions. The MOU was signed by LGES and three Hanwha Group subsidiaries: Hanwha Solutions, which owns clean energy manufacturer Qcells, Hanwha Corporation/Momentum, and Hanwha Aerospace.
The planned joint investment aims to increase the availability of batteries for the US market as demand for domestically-made Energy Storage Systems (ESS) increases following the Inflation Reduction Act. The companies will also collaborate on developing advanced ESS solutions for commercial, industrial, and utility markets, focusing on areas such as enclosure, heat management, and other balance of system components.
With this memorandum of understanding, LGES has secured a steady market demand in the US clean energy market, which is projected to grow rapidly, and has strengthened its business portfolio in advanced automotive batteries, mobility & IT batteries, and ESS batteries.
In 2022, LG Energy Solution (LGES) expanded its operations by creating a new company, LG Energy Solution Vertech Inc., which specializes in integrating energy storage systems and ensuring a reliable battery supply chain through LGES. The companies Hanwha Corporation/Momentum and Hanwha Aerospace, both subsidiaries of Hanwha, will also collaborate with LGES in battery production.
Hanwha Aerospace is a top aerospace and defense company known for its rocket engines and satellite technology, while Hanwha Corporation/Momentum is an automation engineering firm that manufactures batteries, solar panels, and displays.
Hanwha plans to provide crucial battery production facilities for LGES, as it builds joint battery factories with major automobile manufacturers such as GM, Stellantis, and Honda. The company’s existing factories in Korea, Poland, and Michigan are also set to expand.
Hanwha Aerospace is also collaborating with LGES to create specialized batteries for Urban Air Mobility. Hanwha Solutions, another subsidiary, owns Qcells, a significant global manufacturer of solar cells with operations in China, Malaysia, South Korea, and the US.
