Hanwha Group to Invest in Building Battery Production Facilities with LG Energy Solution in US

Hanwha Group and LG Energy Solution (LGES) announced they will invest in building battery production facilities in the United States.

The joint investment will pave the way for Hanwha to lead the rapidly growing energy storage market and future Urban Air Mobility business.

The two sides signed a memorandum of understanding in Seoul for comprehensive battery business cooperation for Energy Storage Systems (ESS) and other cleantech energy solutions.

The MOU was signed by LGES and three subsidiaries under Hanwha Group — clean energy provider Hanwha Solutions’ Qcells Division (Hanwha Qcells), Hanwha Corporation/Momentum and Hanwha Aerospace.

The joint investment is expected to boost battery supply resiliency for the U.S. market amid the growing need for American-made ESS following the passage of the Inflation Reduction Act.

The parties will also pursue technology cooperation for developing advanced ESS solutions tailored to the commercial, industrial and utility markets. They include enclosure, heat management and other balance of system.

With the MOU, LGES has now secured another stable market demand in the mid- to long-term in the U.S. clean energy market where the fastest growth is expected, and thereby established a solid growth platform by reinforcing its well-balanced business portfolio of three sectors: advanced automotive batteries, mobility and IT batteries and ESS batteries.