- Published 2026.10.27 05:46
Targeting US and European markets with large-scale battery supply by 2028
Expanding cooperation after Poland; includes products meeting US FEOC rules
LG Energy Solution has agreed to supply up to 4.5 gigawatt-hours (GWh) of battery energy storage systems (BESS) to Energix, an Israeli global renewable energy developer. In the global ESS market dominated by Chinese companies, LG Energy Solution is seeking to expand its market share in North America and Europe by leveraging a supply chain that meets US Inflation Reduction Act (IRA) requirements.
On Oct. 26 (local time), LG Energy Solution and Energix signed a memorandum of understanding (MoU) at a leadership summit in Seoul to supply up to 4.5GWh of BESS for the European and US markets by 2028. The agreement was made to support Energix's ESS portfolio expansion and secure long-term battery supply stability. 4.5GWh is a large volume capable of storing electricity for hundreds of thousands of households for a day.
The agreement includes systems that meet the Foreign Entity of Concern (FEOC) regulations targeting the US market. Through the IRA, the United States strictly limits tax credit benefits for companies using battery components sourced from FEOC countries such as China.
The global ESS market is currently led by Chinese lithium iron phosphate (LFP) batteries with price competitiveness. However, as sanctions requirements in the US market have tightened, Korean battery companies that meet FEOC requirements have emerged as alternatives, creating a structure of growing benefits.
Energix, the partner company, is an independent power producer (IPP) established in 2009 and listed on the Tel Aviv Stock Exchange (TASE) in Israel. It develops and operates solar, wind, and energy storage projects mainly in Israel, Poland, and the United States.
The company entered the US market in 2017 and has established itself as a major solar developer. It currently has more than 855 megawatts (MW) of operating assets and over 6.5 gigawatts (GW) of development pipeline worldwide, showing rapid growth.
The two companies have already built a cooperative relationship in the Polish market through renewable energy projects. Energix's Polish subsidiary currently operates 1.3GW of commercial solar and wind power and 102 megawatt-hours (MWh) of ESS, and is constructing an additional 292MWh ESS facility. Based on their business experience in Poland, the two companies have significantly expanded their cooperation to the United States and Europe, the world's largest ESS markets.
LG Energy Solution has recently been focusing on fostering the ESS business as a new revenue source in response to slowing electric vehicle (EV) demand. It is pursuing plans to convert some EV battery production lines at key sites such as Michigan in the US to ESS use, and is increasing large-scale grid ESS orders mainly in North America.
※ 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.
