LG Energy inks $1.6B deal to supply ESS batteries to U.S. utility firm

LG Energy Solution's Energy Storage System [LG ENERGY SOLUTION]

LG Energy Solution has signed a $1.6 billion contract to supply 6 gigawatt-hours of energy storage system (ESS) batteries to DTE Energy, one of the largest utility companies in the United States and the biggest power provider in Michigan, the Korean company said Thursday.

The batteries will be delivered over the course of two years. DTE Energy will use the batteries across eight grid infrastructure projects, including a new AI data center that Oracle is building in Saline Township, Michigan. The Oracle facility is to be used by OpenAI, the developer of generative AI ChatGPT.

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Demand for ESS batteries is expected to surge as Big Tech firms accelerate AI data center construction across North America while renewable energy adds to grid needs. The batteries LG Energy Solution is supplying will help stabilize the power load at data centers and store energy generated from sources such as solar and wind for release during hours of peak demand.