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

The eight projects will deliver 1.5 gigawatts of battery storage, or 6 gigawatt-hours, allowing electricity to be stored when excess power is generated and distributed to customers as needed, the company’s unit, LG Energy Solution Vertech, said in a press release.

The deal is worth $1.6 billion, according to a Yonhap report.

“As more US-made energy storage projects are added to the energy grid, we’re building opportunities for advanced roles in the state that support our national energy needs,” said Jaehong Park, chief executive officer and president of LG Energy Solution Vertech.

The South Korean battery company has been expanding its energy storage systems business in the U.S.

Its battery production network for energy storage systems in North America comprises three standalone facilities and two joint venture facilities.

The company is “actively responding to growing customer demand for [energy storage systems] batteries produced locally in the United States.”

“Leveraging this robust production network, the company will secure over 50GWh of [energy storage systems] battery production capacity in the region by the end of this year,” the company said in a statement in April.