LG Energy Solution 2 trillion won4,000 billion won ESS order, shares rise 14%

28 LG Energy Solution announced that it had signed a 2 trillion 4,000 billion won energy storage system (ESS) supply contract with DTE Energy in the United States. The company said the supply was intended to meet electricity demand from AI data centers in the United States. According to reports, supply is also planned for Oracle’s AI data centers and other facilities.

Following the contract announcement, LG Energy Solution shares rose 14%. Hyundai Mobis was also reported to have gained that day on news that securities firms had raised their price targets. The share price movements of both companies were observed during trading that day.

A recommendation was issued to prioritize locations with power infrastructure when building logistics warehouses and data centers. The recommendation includes access to substations, available transmission and distribution capacity, and the availability of cooling facilities. Industry players explained that specialized infrastructure is connected to AI-related facilities.

LG Energy Solution described the contract as a result of its U.S. ESS strategy. The company disclosed the supply schedule and delivery terms under the contract. The contract was reportedly for multiple locations in the United States, including Michigan.

Meanwhile, the order was presented as an example of connecting South Korea’s battery supply chain with demand for power infrastructure in the United States. Reports said securing power infrastructure is a key condition for investment in data centers and logistics facilities. The accounts noted that the share prices of related companies and investor interest moved in tandem.