LG Energy Solution's shares surge as much as 16% after landing major U.S. battery storage deal

Shares of LG Energy Solution experienced a remarkable increase of up to 16.56% on Thursday, following news that its U.S. branch has finalized a significant contract to provide battery cells for DTE Energy's storage initiatives in Michigan. This agreement covers eight projects designed to deliver 1.5 gigawatts of battery storage—equivalent to 6 gigawatt-hours—capable of storing excess energy for later distribution to consumers. The value of the contract is reported to be approximately $1.6 billion, according to Yonhap. Jaehong Park, the CEO and president of LG Energy Solution Vertech, emphasized the importance of such projects, stating, "As more US-made energy storage projects are incorporated into the energy grid, we are creating opportunities for advanced roles in the state that cater to our national energy needs." The South Korean firm has been actively enhancing its energy storage systems in the U.S., with a production network that includes three independent facilities and two joint ventures. The company is keenly focused on meeting the rising demand for locally produced energy storage batteries, asserting that it will achieve over 50GWh of battery production capacity for energy storage systems in North America by the end of this year, as noted in an April statement.