LG Energy Solution said on May 28 that it signed a large-scale energy storage system (ESS) battery supply agreement with DTE Energy, the largest energy company in the US state of Michigan.
The contract covers ESS batteries totaling 6 gigawatt-hours (GWh) and is valued at $1.6 billion. The supply period will span about two years.
DTE Energy is a major utility company supplying electricity to 2.3 million households primarily across southeastern Michigan.
Under the agreement, the company will develop a total of eight power grid projects, including a new Oracle AI data center project in Saline Township, Michigan.
The batteries will be produced at LG Energy Solution's Holland, Michigan facility, the first plant in North America to begin large-scale ESS battery mass production.
LG Energy Solution currently operates or is building five production sites across North America, including facilities in Michigan, Canada, Tennessee and Ohio.
The company plans to expand global ESS production capacity to more than 60GWh by the end of this year, with 50GWh allocated to North America.
