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LG Energy Solution's NVIDIA BESS. / LG Energy Solution

LG Energy Solution is joining forces with global renewable energy company Energix to expand into the energy storage system (ESS) markets in Europe and North America. The company plans to supply a total of 2 GWh of batteries over the next two years and is also considering expanding the scope of cooperation to 4.5 GWh in the medium to long term. Its strategy is to broaden its global customer base by securing large-scale ESS business opportunities in Europe, following North America.

LG Energy Solution announced on Oct. 27 that it had signed a strategic memorandum of understanding (MOU) with Energix Renewable Energies Ltd. at its headquarters in Parc.1, Yeouido, Seoul, to cooperate on ESS projects in Europe and North America.

Under the agreement, the two companies will pursue cooperation with the aim of supplying a total of 2 GWh of ESS capacity within the next 24 months, comprising 1.5 GWh in Europe and 0.5 GWh in North America. They also plan to discuss expanding the total supply volume to 4.5 GWh in the future through their European and U.S. subsidiaries and other entities.

However, the agreement is a legally non-binding MOU, and actual supply volumes and contractual terms are expected to be finalized through further discussions.

Energix is an Israel-headquartered global independent power producer (IPP) specializing in renewable energy. The company develops and operates solar, wind and ESS projects, primarily in Europe, North America and Israel. It is currently expanding its business with the goal of building a global renewable energy project portfolio exceeding 8 GW.

The two companies plan to begin implementing their cooperation through the Jonava project, which Energix is pursuing in Lithuania. The Jonava project is an integrated renewable energy project involving the installation of an ESS with a capacity of approximately 320 MWh. It is currently in the development stage and is targeting commercial operations in 2027.

LG Energy Solution and Energix previously established a cooperative relationship through the Nowe Czarnowo ESS project in Poland in 2024. The latest agreement is expected to serve as an opportunity to expand their existing project-level cooperation across Europe and North America.

In particular, LG Energy Solution expects the agreement to help expand its business opportunities in the European ESS market. Having recently expanded its ESS business in North America in response to demand from artificial intelligence (AI) data centers, grid stabilization and renewable energy integration, the company now plans to secure customers and strengthen its supply base in Europe as well.

ESS technology is used to respond to fluctuations in electricity generation from renewable energy sources such as solar and wind power and to stabilize electricity supply and demand. As renewable energy deployment expands alongside growing demand for investment in power grids, ESS has emerged as a major growth business for battery companies.

LG Energy Solution plans to expand its ESS operations in both North America and Europe simultaneously to reduce its dependence on any particular region and diversify its global business portfolio. To this end, it intends to strengthen cooperation with customers by leveraging its battery technology and local manufacturing capabilities.

Asa Levinger, chief executive officer (CEO) of Energix, said, "This agreement will serve as an opportunity to solidify our long-term partnership with LG Energy Solution," adding, "We will explore opportunities to deploy energy storage solutions across Energix's projects and accelerate the expansion of renewable energy in key markets."

Kang Chang-beom, senior vice president and head of the ESS Battery Division at LG Energy Solution, said, "Through our cooperation with Energix, we have been able to expand ESS business opportunities in Europe and North America and strengthen our global customer base," adding, "We will accelerate the growth of our global ESS business based on our differentiated technology and local manufacturing capabilities."

                                                                                                            Nam Hyun-soo