LG Energy Solution and Hanwha Group partner on battery development

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LG Energy Solution signed a Memorandum of Understanding (MoU) with three  Hanwha Group companies to collaborate on battery manufacturing equipment and battery technologies for energy storage systems (ESS) and for specialty use. The three companies are Hanwha Solutions, owner of Qcells, Hanwha Corporation/Momentum, and Hanwha Aerospace.

The new partners will invest in establishing energy storage systems (ESS) battery production lines in the United States, and the two will work on maximizing synergies and expanding the application of batteries to future mobility fields such as Urban Air Mobility (UAM).

The collaboration will enable Qcells to secure a stable battery supply for the U.S. power grid market and especially for ESS batteries. Last week the company announced that it will invest more than $2.5 billion to build a complete solar supply chain in the United States.

As the largest investment in the U.S. solar industry, the project will make Qcells the first company to establish a fully-integrated silicon-based solar supply chain in the U.S. The company aims to not only be a leading company in solar manufacturing, but also in engineering, procurement and construction (EPC), and ESS business development by securing stable battery supply and competitive product procurement.

With the MoU, LGES positions itself firmly in the U.S. market by reinforcing its business portfolio in three sectors: advanced automotive batteries, mobility and IT batteries, and ESS batteries.

LGES advanced into the field of ESS System Integration by establishing a new corporation, LG Energy Solution Vertech. Inc., which offers customers a streamlined approach to energy storage system integration and a secure battery supply chain through LGES.

In the new collaboration, LGES will also work closely with Hanwha Corporation/Momentum, an automation engineering solutions company. The expectation is that the companies will cooperate on businesses related to battery manufacturing equipment.

In August of 2022, LGES and Honda announced plans to invest $4.4 billion and establish a new joint venture manufacturing plant in the U.S. that is expected to have an annual production capacity of approximately 40 GWh. The pouch-type batteries produced at the new plant will be supplied exclusively to Honda facilities in North America.

In July 2022, LGES and GM announced a joint venture after securing a loan from the U.S. Energy Department intends to loan Ultium Cells LLC, a joint venture of General Motors Co. and LG Energy Solution, $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan also constructing joint venture plants in North America with GM (three Ultium Cells plants) and Stellantis, and also plans to further expand the production capacities of its own facilities in Michigan, Poland and South Korea.

LGES will also collaborate with Hanwha Aerospace in developing special-purpose batteries for its Urban Air Mobility (UAM) and more.

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