Seoul: LG Energy Solutions Ltd. announced on Thursday that it has secured a significant agreement with a U.S. energy company to supply energy storage system (ESS) batteries valued at US$1.6 billion. The South Korean battery manufacturer will provide a total of 6 gigawatt-hours over the next two years to DTE Energy, an energy company that supplies power to 2.3 million households and natural gas to 1.3 million households.

According to Yonhap News Agency, the ESS batteries supplied by LG Energy Solutions will be utilized in eight power grid construction projects undertaken by the Detroit-based DTE Energy. Among these projects is a significant artificial intelligence (AI) data center for Oracle Corp. The South Korean company highlighted its commitment to primarily manufacture these batteries at its Michigan facility, which marked a milestone last June by commencing mass production of ESS batteries in North America for the first time.

LG Energy Solutions operates five factories across North America, with locations in Canada, Tennessee, and Ohio. The Ohio facility was developed in collaboration with Japanese carmaker Honda Motor Co., illustrating the company's expansive manufacturing presence in the region.