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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Energy Solution (LGES) has been selected as a key partner for a 1GWh energy storage system (ESS) project in Poland.
On Tuesday, LGES announced that it had signed a contract with Poland’s state-owned power company, Polska Grupa Energetyczna (PGE), to supply batteries for ESS. The batteries, produced at LGES’s Wrocław plant, will be lithium iron phosphate (LFP) batteries and are scheduled for delivery starting next year. While the contract value has not been disclosed, industry experts estimate it to be worth several hundred billion KRW (hundreds of millions of USD).
Boosting Production Efficiency at Wrocław Plant
With demand for EV batteries slowing, LGES has been repurposing EV battery production lines for ESS applications. This deal is expected to improve the Wrocław plant’s utilization rate. Additionally, LGES is not only supplying battery cells but also providing a turnkey solution, which includes containerized battery systems and engineering, procurement, and construction (EPC) services.
Poland’s Largest ESS Project to Date
PGE, Poland’s largest state-owned power utility, serves 6 million households, businesses, and public institutions. The 1GWh ESS project, to be built in Żarnowiec in northern Poland, aims to enhance renewable energy integration and grid stability. The system is scheduled to begin commercial operation by 2027.
LGES noted that localization strategies are becoming increasingly important in the ESS market, particularly as Europe and North America prioritize domestically produced or regionally sourced battery solutions for energy security.
LGES’s European Expansion Strategy
This deal marks a strategic milestone for LGES in expanding its presence in Europe’s ESS market. The company plans to leverage LFP battery technology—which offers enhanced safety, longer lifespan, and cost competitiveness—to meet evolving customer demands across Europe.
As ESS plays a crucial role in addressing the intermittency of renewable energy sources like solar and wind, LGES is positioning itself as a key supplier in the global energy transition.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
