South Korea’s LG Chem and German engineering company Siemens have agreed to collaborate more closely on project development and marketing of industrial battery storage systems.
LG Chem and Siemens have signed a memorandum of understanding in response to growing demand for energy storage systems, which are increasingly needed to stabilize distribution grids, the companies said on Wednesday.
As part of the new deal, Siemens will supply converters and controllers for the joint storage solutions and also handle project planning and implementation as well as integration of storage systems into distribution grids and microgrids. LG Chem will supply the batteries and the battery management system.
The two companies said they would accelerate efforts to dominate the energy storage solution (ESS) market by collaborating on several major ESS projects over the next several years.
LG Chem and Siemens have been working together for a number of years on lithium-ion-based energy storage systems. Technologies from both companies are in use in a number of international projects. Siemens, for example, supplied a Siestorage battery storage system to German energy company Vulkan Energiewirtschaft Oderbrücke (VEO) in the state of Brandenburg to ensure the black start capability of the gas turbines in the Eisenhüttenstadt power plant. The blast furnace gas-fired power plant supplies the steel mill of ArcelorMittal Eisenhüttenstadt GmbH (AMEH) with electricity and heat in the event of failure of the local distribution network. Lithium-ion batteries from LG Chem are installed in the storage system.
In an interview with pv magazine on Wednesday, Frank Blome, chairman of Daimler storage divsion Deutsche ACCUmotive, said the company planned to offer industrial and stationary storage in addition to its batteries for electric and hybrid vehicles. In addition, the company said Daimler would cease production of battery cells at its Li-Tec unit and instead use LG Chem battery cells in its storage battery production.
LG Chem is one of the world’s largest lithium-ion battery manufacturers with significant market share in consumer, automotive and stationary applications.