LG Energy Solution (LGES) is now the nation’s largest lithium-iron phosphate (LFP) battery cell producer particularly for the grid-scale market. The Korean firm started producing LFP cells at its new plant in Holland, Michigan, final month, and Photo voltaic Energy World was capable of tour the positioning this week and see manufacturing on two traces. A 3rd line needs to be working by the tip of the 12 months, and the plant will ultimately have an annual manufacturing capability of 16.5 GWh of battery elements for power storage techniques (ESS).
The white-roofed buildings are the ESS editions in Holland for LG Vitality Resolution.
LGES has operated in Holland since 2012, first as an EV battery producer underneath the “LG Chem” title. In 2022, the corporate introduced a $1.4 billion funding to begin ESS battery manufacturing at an enlargement on-site. The choice to assist an ESS build-out over EV was smart because the EV market of immediately faces waning buyer demand and lessened federal assist.
“ESS was the ugly duckling for a while for LG,” mentioned Jaehong Park, CEO of LG Vitality Resolution Vertech, the stationary storage arm of LGES. “The monetary efficiency of ESS prior to now was tough,” and EV was a a lot bigger monetary driver for the corporate. However now LGES sees extra progress for ESS and already has four-times extra ESS manufacturing capability than final 12 months, Park mentioned.
That’s largely the principle speaking level for the business: Whatever the subsidies provided by the federal authorities, power storage is right here to remain. Whereas the newest drafts of the congressional funds invoice have made vital cuts to wash power incentives established within the Inflation Reduction Act (IRA), power storage has one small win. Within the current bill language, power storage initiatives would nonetheless have entry to the IRA’s authentic funding tax credit score (ITC) percentages, whereas photo voltaic challenge subsidies could obtain an accelerated phase-down. It looks as if an acknowledgment from Congress at simply how vital power storage is changing into to America’s increasing electrical grid.
LG Vitality Resolution
“There’s no short-term different to assist the load improve,” Park mentioned, noting that as extra information facilities and different large-electricity customers come on-line, the nation can not construct “conventional” gas crops quick sufficient. Vitality storage is the best-fit choice to assist intermittent power sources (i.e., photo voltaic) to maintain the grid working. “With out [supportive policy], ESS will gradual however it can bounce again. It’s needed,” he mentioned.
The LG Vitality Resolution plant in Holland is at present making simply cells and can ultimately start assembling modules later this summer season.
To make the cells, a mixing room takes uncooked supplies and provides binders and solvents to make a slurry. Foil is coated with the slurry, which passes by way of numerous steps to roll it to the precise thickness. One mono-cell consists of a cathode and anode layer mixed with LGES’s safety-reinforced separator (SRS). Then 40 mono-cells are stacked with one further anode layer, tabs are welded collectively after which they’re slid into aluminum pouches. The pouch is sealed, electrolyte will get injected and it soaks by way of the SRS. These pouches then get stacked into modules, which is able to then be containerized for grid-scale storage or residential purposes.
LG Vitality Resolution
Park mentioned that the modules shall be despatched to LGES’s plant in Arizona to be assembled into LG Vitality Resolution-branded BESS. However quickly, LGES will open an meeting plant outdoors Chicago to serve its Japanese-U.S. prospects.
“We usually don’t do modules or containers,” Park mentioned of LGES’s manufacturing space, however the firm wished to make use of its in-house experience already developed by way of its EV partnerships to carry out extra ESS meeting in america.
Since LGES is making the battery cells on American soil, its BESS simply qualify for domestic content adders to the ITC, as at present written into legislation. Relying on how a lot of the IRA stays intact within the remaining funds invoice, LGES BESS might be a sizzling commodity within the nation.
U.S. battery manufacturing notes: Hithium has a 10-GWh LFP battery assembly plant in Texas, however it isn’t making the cells in america. Canadian Photo voltaic subsidiary e-STORAGE is constructing a 3-GWh LFP cell and module plant in Kentucky, however it isn’t but full. AESC has retooled its EV battery manufacturing plant in Tennessee to supply LFP cells for ESS (specifically Fluence), though the plant’s annual manufacturing capability has not been revealed (beforehand estimated at 3 GWh for EV).
