South Korea-based battery manufacturer LG Energy Solution has signed a US$1.6bn (€1.4bn) agreement to supply energy storage system (ESS) batteries to US utility DTE Energy, strengthening electricity infrastructure as utilities face rising demand from data centres and renewable energy integration.

Korea JoongAng Daily reported that the deal covers the supply of 6 gigawatt-hours of ESS batteries over two years for use across eight grid infrastructure projects in the United States, including an artificial intelligence data centre under development by Oracle in Michigan.

DTE Energy, one of Michigan’s largest electricity providers, is expected to deploy the battery systems to stabilise power loads, improve grid flexibility and store electricity generated from renewable sources for use during peak demand periods.

Demand for utility-scale battery storage continues to accelerate as energy systems adapt to increased electricity consumption linked to AI infrastructure and digital industrial growth. Large-scale ESS projects are increasingly viewed as essential for balancing intermittent renewable generation and supporting grid reliability.

LG Energy Solution said the batteries will primarily be produced at its Holland, Michigan facility, which began mass production of ESS batteries in North America last year as part of a broader localisation strategy targeting domestic energy markets.

The company currently operates five ESS production facilities across North America and plans to increase global ESS manufacturing capacity to more than 60 gigawatt-hours by the end of 2026, with roughly 50 gigawatt-hours concentrated in North America.

The agreement strengthens LG Energy Solution’s position in the fast-growing energy storage market as utilities increase investment in grid modernisation and long-duration energy resilience infrastructure.

Read the full details on LG Energy Solution’s ESS battery agreement with DTE Energy here.