LG Energy Solution announced on March 26 that it has formed a strategic partnership with Delta Electronics, a global energy management company, to expand into the residential energy storage system (ESS) market in the United States. Under the agreement, LG Energy Solution will supply a total of 4 gigawatt-hours (GWh) of residential storage system batteries, all of which will be manufactured in the United States, catering to the daily electricity needs of over 400,000 households.
This collaboration will leverage LG Energy Solution’s technological advantages in the battery sector and its localized production capabilities. Starting in the second half of this year, LG Energy Solution plans to launch dedicated lithium iron phosphate (LFP) battery production lines at its facility in Holland, Michigan, to meet the growing demand in the North American market. Analysts note that with the introduction of tariffs on Chinese ESS batteries in the U.S. by 2025, domestically produced battery products will hold a more competitive position.
Delta Electronics, a long-term partner of technology giants like Tesla and Apple, holds a leading advantage in the power conversion systems sector. The company plans to introduce a new generation of integrated residential LFP storage products in the U.S. in the second half of this year, featuring advanced hybrid inverter technology to enhance energy utilization efficiency.
According to market research firm Fortune Business Insights, the residential ESS market in the U.S. is rapidly expanding at an average annual compound growth rate of 23.5%, expected to surge from $899 million in 2022 to $4.741 billion by 2030. LG Energy Solution and Delta Electronics also plan to deepen their collaboration in grid-level energy storage and commercial storage sectors to further expand their market reach.
The head of LG Energy Solution’s ESS Battery Division, Kim Young-sik, stated, “By combining our technologies for an efficient integrated solution, we will deliver differentiated customer value and competitive products, contributing to the sustainable development of the U.S. residential energy market.” Mike Wang, head of Delta Electronics’ PVI Division, added, “This partnership will help households produce and store renewable energy more efficiently, thereby reducing energy costs and promoting a sustainable future.”
LG Energy Solution’s facility in Holland, Michigan
