LG Energy Solution, Hanwha team up for battery, energy storage, air mobility

All News 13:37 January 16, 2023

By Kim Seung-yeon

SEOUL, Jan. 16 (Yonhap) -- South Korea's leading electric vehicle (EV) battery maker, LG Energy Solution Ltd. (LGES), and defense-focused Hanwha Group said Monday they have joined hands to establish battery production facilities for the energy storage system (ESS) in the United States and develop batteries for air mobility and other future growth engines.

LGES signed the memorandum of understanding with Hanwha Q Cells, Hanwha Momentum and Hanwha Aerospace, for the comprehensive partnership on the joint investment and collaboration, the companies said in a joint release.

Hanwha Q Cells is the solar panel unit of Hanwha Solutions. Hanwha Momentum engages in providing battery, solar and automated equipment solutions, and Hanwha Aerospace manufactures aircraft engines.

Under the MOU, the two sides will form a task force to work out plans for the partnership, including building a stable battery supply chain for Hanwha Q Cells' ESS production in the United States, and developing related ESS solutions, such as heat management and other balance of systems.

Hanwha Momentum will provide battery manufacturing solutions to the battery producer. LGES is building joint battery plants with General Motors Co., Stellantis N.V. and Honda Motor Co. in the U.S., with a plan to expand its stand-alone factories in Korea, Poland and the U.S. state of Michigan.

Hanwha Aerospace will collaborate on developing special-purpose batteries for urban air mobility, an area that the defense unit of Hanwha has been focusing on as a future growth driver.

The partnership is expected to give a boost to Hanwha's efforts to secure a stable battery supply chain in the U.S. market amid the burgeoning ESS demand.

Hanwha Q Cells is the biggest silicon-based solar manufacturer in the U.S.

The partnership will give LGES a long-term market in the clean energy field in America and firm up its global foothold in the battery business covering automotive, ESS and mobility, the companies said.