LG Energy Solution has signed a large-scale energy storage system (ESS) battery supply agreement with U.S. utility company DTE Energy, strengthening its push into the North American power infrastructure market as electricity demand surges from artificial intelligence data centers.
LG Energy Solution announced on May 28 that it will supply a total of 6 gigawatt-hours (GWh) of ESS batteries to DTE Energy over the next two years. The contract is valued at approximately $1.6 billion, or around 2.4 trillion won.
Headquartered in Detroit, Michigan, DTE Energy is the largest integrated energy company in Michigan and one of the major utility operators in the United States. The company supplies electricity to roughly 2.3 million customers and natural gas to about 1.3 million households across southeastern Michigan. Its annual revenue is estimated at around $15.8 billion.
The batteries supplied under the agreement will be used for eight key power grid projects being developed by DTE Energy, including infrastructure supporting a new AI data center project by Oracle Corporation in Saline Township, Michigan.
Industry analysts say the contract reflects rapidly growing demand for energy infrastructure in the U.S. as generative AI services and hyperscale data centers continue expanding. ESS systems are increasingly viewed as essential for stabilizing power supply and improving renewable energy efficiency.
LG Energy Solution said the batteries will primarily be produced at its Holland, Michigan facility, which began large-scale ESS battery production last year as the first such manufacturing base in North America.
The company is currently operating or building five ESS-related production sites across North America, including facilities in Holland and Lansing, Michigan, the NextStar Energy plant in Canada, the Ultium Cells Tennessee factory, and a joint venture battery plant with Honda in Ohio.
LG Energy Solution plans to expand its global ESS production capacity to more than 60GWh by the end of this year.
Industry observers note that while electric vehicle battery demand has slowed in some markets, ESS has emerged as a key growth segment, particularly in the U.S. where renewable energy expansion and AI-driven electricity consumption are accelerating simultaneously.
