LG Energy Solution inks 7.5GWh ESS deal with Excelsior Energy Capital

(LG Energy Solution)

LG Energy Solution Ltd. has secured a major energy storage system (ESS) supply contract with Excelsior Energy Capital, bolstering its position in the bourgeoning North American ESS market.

The South Korean company announced Friday that its U.S. subsidiary signed a deal with Excelsior Energy Capital, a global private equity firm specializing in renewable energy infrastructure, on Saturday, to supply 7.5 gigawatt-hours (GWh) of ESS products.

The 7.5 GWh capacity is sufficient to power over 750,000 households for one day and is set to be produced and delivered locally in North America starting in 2026.

Excelsior Energy Capital, founded in 2017, focuses on renewable energy investments and holds a diverse portfolio across North America, including California, Colorado, and Tennessee.

The firm aims for stable, long-term returns through active investments in renewable infrastructure.

The products for this project will include LG Energy Solution‘s high-capacity lithium iron phosphate (LFP) long cell JF2 Cell technology, integrated into containerized solutions branded as JF2 AC LINK.

These products boast enhanced energy density and safety features, thanks to a water-cooled system that improves cooling efficiency. The modular design allows for customized configurations tailored to client needs.

LG Energy Solution also plans to provide a comprehensive suite of services to optimize ESS operations, including power control systems (PCS), energy management systems (EMS), and cloud-based real-time monitoring software called AEROS™.

This integrated approach positions the company as a leader in the rapidly expanding North American ESS market, according to insiders.

The latest agreement establishes a long-term partnership between LG Energy Solution and Excelsior, underscoring its strategic significance, LG Energy Solution sad in a statement.

Excelsior noted the company’s proven production capabilities and advanced software and system integration (SI) services, highlighting its ability to deliver high-quality, reliable products on time.

While the electric vehicle market has recently experienced temporary demand stagnation, the ESS market continues to show robust growth.

Industry projections estimate the global ESS market will grow at an annual average of over 20 percent through 2028, driven primarily by demand for grid-scale solutions.

This deal marks LG Energy Solution’s third major ESS contract of the year, following agreements with Hanwha Q CELLS for 4.8 GWh in May and U.S.-based renewable energy company TerraGen for up to 8 GWh in October.