Hanwha, LGES plan to invest in battery manufacturing facilities in US
- Hanwha Group and lithium-ion battery maker LG Energy Solution Ltd (KRX:373220), or LGES, will make joint investment in energy storage system(ESS) battery manufacturing facilities in the US, both South Korean business stated today in separate announcements.
A memorandum of understanding (MoU) for battery service cooperation was signed in Seoul in between LGES and also three Hanwha Group subsidiaries - Hanwha Solutions (KRX:009830), which is the proprietor of solar products manufacturer Qcells, Hanwha Corporation/Momentum and Hanwha Aerospace.
"The joint investment is anticipated to boost battery supply resiliency for the US market amidst the expanding need for American-made Energy Storage System following the passage of Inflation Reduction Act," Hanwha's statement reads. The business will certainly also work together on technology growth.
The collaboration will support Qcells in its ambition to develop itself as a leading solar as well as energy storage developer as well as engineering, procurement as well as building and construction (EPC) provider in the United States, along with its production organization. Just numerous days ago Qcells revealed financial investment strategies to get to 8.4 GW of solar panel production capacity in Georgia by the end of 2024.
According to the announcements, the pact offers LGES with stable market demand in the US. The firm has also lately established a subsidiary in the area of ESS system integration.
With automation engineering professional Hanwha Corporation/Momentum, LGES will partner on battery manufacturing equipment. LGES is presently building joint venture plants in North America with automakers such as GM, Stellantis as well as Honda.
The cooperation with Hanwha Aerospace will include establishing special-purpose batteries for urban air mobility (UAM).
"Our collaboration with Hanwha Group is anticipated to take the competition of each business's battery-related organizations a step further," claimed LG Energy Solution.