LG Energy Solution Shares Jump 15% After Winning Major U.S. Battery Storage Deal

Shares of LG Energy Solution soared on Thursday after the company announced a major battery supply agreement tied to large-scale energy storage projects in the United States.

The stock closed 15.25% higher after rising as much as 16.56% earlier in the trading session, following news that LG Energy Solution Vertech, the company’s U.S. energy storage unit, had secured a supply deal for projects developed by DTE Energy in Michigan.

According to the company, the projects will collectively deliver 1.5 gigawatts of battery storage capacity, equivalent to 6 gigawatt-hours. The battery systems will allow excess electricity generated during periods of lower demand to be stored and redistributed when energy usage increases.

South Korea’s Yonhap News Agency reported that the deal is valued at approximately $1.6 billion.

The agreement marks another major step in LG Energy Solution’s aggressive expansion into the U.S. energy storage market, which has become a key focus area as utilities and governments invest heavily in grid modernization and renewable energy infrastructure.

“As more U.S.-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.

Energy storage systems are becoming increasingly important as renewable energy sources such as solar and wind continue to grow. Batteries help stabilize power grids by storing surplus electricity and supplying it during peak demand periods or when renewable generation drops.

LG Energy Solution has been rapidly expanding its manufacturing footprint in North America to capitalize on rising demand for domestically produced battery systems, particularly after the introduction of U.S. incentives aimed at strengthening local clean energy supply chains.

The company currently operates three standalone battery production facilities and two joint venture plants in North America dedicated to energy storage systems.

LG Energy Solution said earlier this year that it is “actively responding to growing customer demand” for batteries manufactured locally in the United States.

The company added that it expects to secure more than 50 gigawatt-hours of annual energy storage battery production capacity in North America by the end of this year.

The latest contract also highlights growing momentum in the U.S. battery storage sector as utilities seek to improve energy reliability and integrate more renewable power into electricity grids.

Investors have increasingly viewed energy storage as one of the fastest-growing segments within the broader clean energy industry, especially as governments push for greater energy independence and grid resilience amid rising global energy volatility.

For LG Energy Solution, the Michigan projects reinforce its ambitions to become a dominant player in the North American energy storage market while diversifying beyond electric vehicle batteries, which have faced slowing demand growth in some regions over the past year.