AES Energy Storage Selects LG Chem As Battery Supplier For ESS


JAN 20 2016 BY MARK KANE 14

AES Energy Storage

AES Energy Storage

LG Chem lithium-ion battery cell

LG Chem lithium-ion battery cell

LG Chem announced a multi-year agreement with AES Energy Storage on lithium-ion cell supplies for energy storage systems.

There are no exact numbers for MWhs in the transcation, but LG Chem notes that six years ago there was only 60 MW of ESS in operation or announced worldwide, compared to 1,400 MW today.

AES Energy Storage announced 384 MW in operation, construction, or late stage development, which makes them one of largest players.

“The agreement covers the supply of several of LG Chem’s battery modules that have been designed and configured for AES’ Advancion grid-scale energy storage solution. The agreement provides access to batteries to meet the needs of Advancion installations currently under construction and allows AES to purchase additional batteries to meet the growth for future Advancion system sales. For reference, 1 GWh of batteries is capable of powering 250 – 1,000 MW of energy storage installations, depending on the needs of the customer.”

John Zahurancik, President of AES Energy Storage said:

“We are excited to provide utilities, developers, and businesses access to high quality batteries at the best prices as part of the complete Advancion grid storage solution. LG Chem is one of our most trusted battery partners and this agreement provides a new scale of activity to serve announced projects as well as installations under development by our utility partners.”

Ungbeom Lee, President of LG Chem’s Energy Storage Solutions business unit remarked:

“AES is one of the world’s most experienced and well-respected integrators of grid-scale energy storage systems, and we are proud to provide our lithium-ion batteries for their Advancion solution. Our agreement provides a roadmap for us to engage most effectively in the delivery of high performance, reliable and cost-effective energy storage systems around the world.”

LG Chem battery modules for AES range from 30 minutes to 4 hours of discharge duration, depending on configuration.

In mid-November, AES opened its first Advancion 4 (fourth generation ESS with LG Chem cells) at the Warrior Run facility in Cumberland, Maryland – 10 MW (unknown MWh).

“The Warrior Run Advancion Energy Storage Array is the largest grid-scale battery, and one of the largest green technology projects, in Maryland, providing 10 MW of interconnected energy storage, equivalent to 20 MW of flexible resource. Warrior Run will provide critical grid stability services in the form of frequency regulation service to the PJM Interconnection, which controls the power grid for more than 61 million people. “

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14 Comments on "AES Energy Storage Selects LG Chem As Battery Supplier For ESS"

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Okay… Who is LG NOT making batteries for???

Pretty much everyone except Toyota.

Toyota(PrimeEarth energy), BMW(Samsung), VW(Panasonic), Tesla(Panasonic), Kia(SK innovation), Mitsubishi(GSYuasa)

Don’t forget BYD, which is making its own batteries for its plug-in EV cars and buses.

But even Tesla is buying a relatively small number of LG Chem cells, for use in the Roadster upgrade packs.

Yeah, I forgot about the biggest non Tesla battery producer-client BYD. Itself along with the Chinese EV making clique that all use lithium iron phosphate batteries from either BYD, Ternery, Beijing Power Pride and Wanxiang.

VW has signed agreements to use LG Chem’s batteries in future cars as well.

Yes, VW (Group) will dual-source from Samsung and LG in the future.

See for example Audi:

BMW will source from LG, too.

If automotive volumes are paying $145/kwh, for better spec batteries, how much does LG Chem need to get for these things?

The $145/kWh is a “sweetheart deal” that LG Chem gave GM, as part of a deal by which LG Electronics supplies the entire powertrain for the Bolt. That may be close to an at-cost price. You can be sure that most if not all of LG’s other customers are paying more.

If GM is getting it for $145/kWh and others are paying $150 to $160/kWh, it is still a good deal.

On a 60kWh battery, the difference is only $300 to $900. Most EVs can absorb that today in various ways…

Our local utility finds it cost-effective to displace a daily 7 kW summer peak AC load for 5 peak hours (35 kWh) with a $10K investment in ice thermal energy storage HVAC systems (“Ice Bears”). That works out to about $300/kWh and $1400/kW demand reduction. So if an ESS can meet those same cost criteria or better, they will have a winner as far as our local utility is concerned. Note that batteries meeting utility requirements will have a much higher energy to power ratio as compared to EV’s

Battery storage doesn’t work well at wholesale prices of big grids and any possible use was made moot by load following NG CCGT’s.
Every one I know of are either mandated or paid for by grants, etc. Not by the grid company.
Storage excess as heat or ice, modulating EV, home battery charging and V2G, making metals, batteries, synfuels is more cost effective than batteries.
Only in micro-grids and smaller DG homes, buildings, etc saving, making retail prices is where they shine a 2-3x’s the profit than wholesale.
And even there they need to be $200/kwhr retail with electronics to be viable at US average prices.
Luckily lead is only $100/kwhr and by the time you need them replaced in 5-7 yrs, lithium will be $150/kwhr retail.