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Hanwha Q CELLS and LG Energy Solution have established a strategic collaboration to focus on the large-scale energy storage system (ESS) market in the United States. With increasing power shortages in the U.S. market due to the rise in artificial intelligence (AI) data centers, the two South Korean companies have reinforced their partnership to ensure the ESS supply chain.

Hanwha Q CELLS will provide lithium iron phosphate (LFP) batteries manufactured at LG Energy Solution’s facility in Holland, Michigan, utilizing them in energy storage system (ESS) projects throughout the U.S. between 2028 and 2030. The total capacity could go up to 5 gigawatt-hours (GWh), which is comparable to the battery power required for around 80,000 electric vehicles. These batteries will be integrated into projects where Hanwha Q CELLS manages engineering, procurement, and construction (EPC), along with LG Energy Solution’s lifecycle support services.

With this agreement, Hanwha Q CELLS has established a supply chain for U.S.-made batteries after its solar module manufacturing. This is anticipated to boost its competitiveness in the local market, which provides tax credits and other benefits for products made domestically. Once Hanwha Q CELLS’ combined solar production facility, the Solar Hub, is finished in Georgia, the company will be able to consistently obtain solar modules and ESS that comply with local manufacturing standards.

The partnership is considered important for forming a “U.S.-based production ESS alliance” among Korean firms. The approach entails a bundled strategy integrating solar and ESS to address growing investments in U.S. energy infrastructure.

Previously, Hanwha Q CELLS concluded a 4.8 GWh battery procurement agreement in May 2024 for U.S. ESS initiatives. That same year, it finished a solar-ESS facility in California to provide electricity for Meta. The company has kept progressing with several ESS projects.