DTE Energy (NYSE:DTE) announced a $1.6 billion investment with South Korea’s LG Energy Solution Vertech to build battery energy storage systems in Michigan. Shares of LG Energy Solution surged over15% on Thursday in Seoul.
The deal encompasses eight projects that will collectively offer 1.5 gigawatts of battery storage, equivalent to 6 gigawatt-hours. This substantial capacity will facilitate the storage of excess electricity for distribution to customers as needed, lowering strain on the grid and reducing the need to start and stop generation as demand fluctuates.
DTE Energy CEO Joi Harris said that the deal is expected to generate $2.3 billion in economic impact, create jobs, boost grid reliability, and support the state's clean energy targets.
Meanwhile, LG Energy Solution has been consistently expanding its energy storage systems business in the U.S. The company’s production network in North America includes three standalone facilities and two joint venture facilities. The company is actively meeting the rising demand for locally produced energy storage system batteries in the U.S.
In a statement released in April, the company disclosed plans to secure over 50GWh of energy storage system battery production capacity in the region by year-end.
DTE Bets on Affordable Energy Growth
This deal comes at a time when DTE Energy is focusing on enhancing the affordability and reliability of its services for all customers. In April, DTE said its electric utility business plans to avoid seeking additional rate hikes for at least two years, provided its first supported data center project launches by the end of 2027 and other approvals are secured.
The growing demand for energy storage systems in the U.S. is underscored by Ford Motor Company's (NYSE:F) recent expansion into the battery storage market through its wholly owned subsidiary, Ford Energy. The company plans to manufacture energy storage systems at its Kentucky facility, targeting an annual deployment capacity of 20GWh.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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