LG Energy Solution, Hanwha signs MOU to dominate battery market in the US

LG Energy Solution and Hanwha Group signed a memorandum of understanding (MOU) this week to cooperate on the battery business in the United States. Their agreement will also ensure a steady supply of inexpensive batteries.

The Hahwa Group that signed the agreement with LG Energy Solution is composed of its three affiliates - Hanwha Solutions, Hanwha Aerospace, and Hanwha Corporation. In this joint venture, they will also bolster the efforts to make advanced battery technology, The Korea Times reported.

It was shared on Monday, Jan. 16, that with their cooperation, LG Energy Solution and the mentioned Hanhwa affiliates are aiming to hold a dominant position in the fast-growing energy storage system (ESS) market in the United States.

The companies will be building a battery production facility in the U.S. through joint investments. They also agreed to create an integrated system that will use air conditioning and electronic equipment applied for ESS.

“Our partnership with Hanwha Group is expected to take the competitiveness of each company’s battery-related businesses a step further,” LG Energy Solution stated in a press release. “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.”

The Hanhwa Group also said that they “have decided to collaborate with LG Energy Solution, which has several large-scale manufacturing facilities being constructed in the U.S., to target the U.S. ESS market boasting fast growth thanks to green energy policies.”

The company further said that their goal is to maximize synergy at home and overseas by promoting partnerships in different business fields, including battery manufacturing equipment and special-purpose batteries.