Hanwha Group and LG Energy Solution (LGES) will invest in building battery production facilities in the United States. The joint investment will pave the way for Hanwha to lead the rapidly-growing energy storage market and future Urban Air Mobility business.

The two companies signed a memorandum of understanding in Seoul for comprehensive battery business cooperation for ESS (energy storage systems) and other clean-tech energy solutions. The MOU was signed by LGES and three subsidiaries under Hanwha Group—Hanwha Solutions, owner of clean energy manufacturer Qcells, Hanwha Corporation/Momentum and Hanwha Aerospace.

The joint investment is expected to boost battery supply resiliency for the US market amid the growing need for US-made Energy Storage System following the passage of “Inflation Reduction Act”. The two companies will also pursue technology cooperation for developing advanced ESS solutions tailored for commercial, industrial and utility market. They include enclosure, heat management and other balance of system.

With the MoU, LGES has now secured another stable market demand in the mid- to long-term in the US clean energy market where the fastest growth is expected, and thereby established a solid growth platform by reinforcing its well-balanced business portfolio of three sectors: advanced automotive batteries, mobility & IT batteries, and ESS batteries.

In 2022, LGES advanced into the field of ESS System Integration by establishing a new corporation, LG Energy Solution Vertech. Inc., which offers customers a streamlined approach to energy storage system integration and a secure battery supply chain through LGES.

The other Hanwha subsidiaries—Hanwha Corporation/Momentum and Hanwha Aerospace—will also participate in battery cooperation with LGES. Hanwha Aerospace is a leading aerospace and defense company manufacturing rocket engine, satellites technology. Hanwha Corporation/Momentum is an automation engineering company providing manufacturing facilities for batteries, solar panels and display.

Hanwha Momentum will seek to supply key battery manufacturing facilities for LGES, which is constructing joint battery factories with global automakers such as GM, Stellantis and Honda. Its existing factories in Korea, Poland and Michigan are also scheduled to expand. Hanwha Aerospace is also planning to work with LGES to develop special-purpose batteries for Urban Air Mobility.

Hanwha Solutions owns Qcells, a major global producer of solar cells with manufacturing facilities in China, Malaysia, South Korea and the US.