- Published 2026.11.06 20:57
To set up joint venture with Nanjing Urban Construction Group for ESS investment and operation
First prismatic LFP battery application in China to accelerate market push
LG Energy Solution is joining hands with a state-owned enterprise under the Nanjing city government to build a large-scale energy storage system (ESS) plant in China. The company will supply its lithium iron phosphate (LFP) batteries to a Chinese project for the first time, making a full-fledged entry into the LFP-based ESS market that has been virtually monopolized by Chinese companies.
According to Nanjing Urban Construction Group on Nov. 6, LG Energy Solution's Chinese subsidiary signed a strategic cooperation agreement with the group the previous day. The agreement was signed at the 9th China International Import Expo (CIIE) held at the National Exhibition and Convention Center in Shanghai.
The two sides will build a 100-megawatt (MW), 400-megawatt-hour (MWh) grid-side standalone ESS plant in the Jiangning Binjiang Development Zone in Nanjing. The signing ceremony was attended by Nanjing Mayor Li Zhongjun and Kim Jae-kwon, chief strategy officer (CSO) of LG Energy Solution.
To build the plant, a subsidiary of Nanjing Urban Construction Group and a partner of LG Energy Solution will establish a separate joint venture. The new joint venture will oversee the entire process, from project investment and construction to future plant operation.
LG Energy Solution will exclusively supply prismatic LFP ESS battery cells for the plant. The structure completes the entire ESS value chain locally, from battery cell manufacturing to system integration, plant investment and actual operation.
The project is particularly significant as it marks the debut of LG Energy Solution's prismatic LFP batteries in the Chinese market. The 400MWh ESS plant to be built in the Jiangning Binjiang Development Zone will be the first local application of LG Energy Solution's prismatic LFP batteries.
LFP batteries use iron, a low-cost raw material, making them cheaper to manufacture than ternary batteries and less prone to fire, which has made them the standard for large-scale ESS markets. Chinese battery makers such as CATL and BYD have led the global LFP ESS supply chain, backed by their massive domestic market.
LG Energy Solution is ramping up mass production and increasing its global ESS market share. In August, it signed a long-term supply contract worth more than 5 trillion won (about $3.7 billion) with Lopal Tech, a Chinese battery materials company, for LFP cathode materials, securing a large-scale raw material supply network.
In North America, its key market, the company has secured an ESS order backlog of 160 gigawatt-hours (GWh) as of the end of the third quarter, expanding its business. It also participated in the third ESS central contract market auction recently led by the Korean government, using LFP batteries produced entirely at its Ochang plant in North Chungcheong Province.
Beyond the large-scale ESS plant, the two sides will expand cooperation into electric buses and waste batteries. They will promote a battery swapping business to improve electric bus operating efficiency and jointly create a circular economy ecosystem that recovers end-of-life batteries and turns them back into resources.
(Dollar figures are approximate, converted automatically at 1,000 won = $0.738, the rate on Nov. 8, 2026.)
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
