LG Energy Solution announced on the 28th that it has signed a contract to supply energy storage system (ESS) batteries with a total capacity of 6 gigawatt-hours (GWh) to DTE Energy, the largest integrated energy company in the state of Michigan in the United States. The contract is valued at USD 1.6 billion (approximately KRW 2.4 trillion), with a supply period of two years.

DTE Energy, headquartered in Detroit, Michigan, is one of the leading energy infrastructure companies in the United States. Centered on the urban and industrially dense areas of southeastern Michigan, it has 2.3 million electricity customers and 1.3 million natural gas customers. Its annual revenue is USD 15.8 billion (approximately KRW 21.7 trillion).

Based on this contract with LG Energy Solution, DTE Energy plans to carry out a total of eight core power grid construction projects in Michigan, including a new artificial intelligence (AI) data center project for big tech company Oracle. The Oracle data center is being built for use by AI company OpenAI. Recently in North America, as big tech companies accelerate the construction of AI data centers and demand to link these facilities with renewable energy grows, demand for ESS batteries has been surging.

LG Energy Solution’s ESS will play a role in stably controlling data center power loads and improving operational efficiency. The products to be supplied under this contract will be produced mainly at the company’s Holland plant in Michigan. This plant became the first in North America to begin mass production of large-scale ESS batteries in June last year.

LG Energy Solution is operating or currently building a total of five ESS production bases in North America. Based on this, the company plans to expand its global ESS production capacity to more than 60 GWh by the end of this year. More than 80% of this capacity (around 50 GWh) will be produced in North America to strengthen its local supply competitiveness.

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