LG, Hanwha to work jointly on batteries, urban air mobility

LG, Hanwha to work jointly on batteries, urban air mobility [Source : LG Energy Solution]

LG Group and Hanwha Group have agreed to work together to seek opportunities in the growing global energy storage system (ESS) market and will expand the partnership to cover battery manufacturing equipment and urban air mobility (UAM) area.

LG Energy Solution Ltd., Hanwha Solutions Corp.’s Hanwha Q CELLS Co., Hanwha Corp. and Hanwha Aerospace Co. signed a memorandum of understanding on Monday and will form a task force to pursue business together.

“Details like investment scale, location and production aren’t decided yet and will be determined as we talk through the task force,” said LG Energy Solution.

ESSs are likely to be a key area for the partnership. LG Energy Solution and Hanwha Q CELLS will jointly work on ESS battery plants in the U.S. The U.S. ESS market for power grids is expected to grow to 95 gigawatt-hours in 2031, from 9 GWh in 2021. ESSs for power grids are used to save any unused power that is generated through photovoltaics (PVs) or other sources in the daytime.

Hanwha Q CELLS is also seeking to expand their businesses to the areas like PV and ESS from its traditional area of PV module supply. The company has announced that it will invest 3.2 trillion won ($2.6 billion) into PV module production facilities. The company’s move is seen as a step toward expanding its fields of business into ESS installation and operations.

ESS battery [Source : LG Energy Solution]

ESSs seem to be the way forward for LG Energy Solution, too, as it expands its businesses beyond simply batteries for automobiles and small-sized batteries.

LG Energy Solution hopes to secure a supply of battery manufacturing equipment and, at the same time, strengthen its automation capacity through the partnership with Hanwha. The battery maker, which supplies batteries to eight out of 10 of the world’s biggest EV makers, had an order backlog worth around 370 trillion won at the end of the third quarter last year.

To ensure production, a secure supply of manufacturing facilities and automation process is a must for LG. The company hopes it could increase its orders and secure supplies through its strategic partnership with Hanwha Corp., a maker of both battery manufacturing units and automation facilities. This seems to be a good business opportunity for Hanwha as this is its first time to supply one of the world’s largest battery makers and will help it grow its sales.

The partnership between LG Energy Solution and Hanwha Aerospace is focused more on developing future growth engines. The two companies will work together on the development and further commercializing of UAM batteries, where light weight is key to success.