LG Energy Solution wins landmark ESS contract in Poland

By Park Jae-hyuk

LG Energy Solution has secured a battery supply deal with Poland’s state-run utility firm Polska Grupa Energetyczna (PGE) to build a massive energy storage system (ESS) facility, the Korean company announced Tuesday.

Under the agreement, starting next year, the global battery leader will supply lithium iron phosphate (LFP) batteries for the 1-gigawatt-hour ESS facility, which is scheduled to begin operations in 2027.

This contract marks the first time LG Energy Solution will supply ESS LFP batteries produced in Europe, leading industry analysts to note that the company's local production capabilities played a key role in securing the deal.

In response to the evolving global electric vehicle (EV) market and diverse customer demands, the company has been optimizing its operations by partially converting EV battery production lines to ESS manufacturing.

The Wroclaw plant is also in the process of transitioning some EV production lines to ESS production, and this contract ensures a stable supply channel for its products.

LG Energy Solution has built a strong reputation by operating the world's largest battery production facilities for years and forming close partnerships with major European companies.

It plans to further expand local ESS battery production in Europe with this contract.

“This project is one of the largest ESS initiatives led by LG Energy Solution in Europe,” Hyung Kim, head of the company's ESS Battery Division, said. “By launching LFP-based products designed specifically for the European market and leveraging our local production capabilities, we have maximized customer value.”

PGE CEO Dariusz Marzec expressed his anticipation for stronger collaboration with LG Energy Solution, emphasizing its role in supporting Poland’s renewable energy transition and the sustainable growth of local communities.