LG Energy Solution Signs $1.6 Billion ESS Battery Supply Deal with DTE Energy
LG Energy Solution announced on June 27 (local time) that it has signed an energy storage system (ESS) battery supply agreement with DTE Energy, the largest integrated energy company in the U.S. state of Michigan.
Under the agreement, LG Energy Solution will supply a total of 6 gigawatt-hours (GWh) of ESS batteries. The contract is valued at approximately $1.6 billion (about 2.4 trillion won), with deliveries scheduled over a two-year period.
Headquartered in Detroit, Michigan, DTE Energy is the state's largest electricity provider and one of the leading utility companies in the United States.
The company serves around 2.3 million electricity customers and 1.3 million natural gas customers, primarily across southeastern Michigan's urban and industrial regions. DTE Energy generates annual revenue of approximately $15.8 billion (about 21.7 trillion won). Recently, the company has been actively investing in grid modernization projects while expanding renewable energy initiatives and partnerships with major technology companies.
Through the new supply agreement, DTE Energy plans to carry out eight key power grid projects, including an artificial intelligence (AI) data center project for Oracle in Saline Township, Michigan.
The ESS batteries supplied to DTE Energy will mainly be produced at LG Energy Solution's Holland plant in Michigan, which began large-scale ESS battery production in June last year -- the first facility of its kind in North America.
Park Jae-hong, head of LG Energy Solution Vertech, said, “We are pleased to cooperate with DTE in Michigan, one of our key production bases in the United States, to supply locally manufactured ESS products. Through our localization strategy, we will continue expanding our North American ESS business while contributing to grid stability and job creation in the U.S.”
Joy Harris, CEO of DTE Energy, said the partnership is expected to help expand local employment opportunities, improve power reliability for customers, increase clean energy investments, and further strengthen Michigan's position as a hub for technological innovation and economic opportunity.
