LG Energy secures ESS supply deal with Poland’s PGE

South Korean battery maker LG Energy Solution (LGES) has signed an agreement with PGE, Poland’s largest energy sector company, to supply 981MWh of grid-scale Energy Storage Systems (ESS) batteries between 2026 and 2027.

The two companies will collaborate to establish a battery energy storage facility in Żarnowiec, Poland. PGE plans to start the project’s commercial operation in 2027. 

LG Energy will also provide a turnkey solution encompassing containerized battery systems and Engineering, Procurement and Construction (EPC) services with partners in Europe.

This project will feature the first grid-scale ESS batteries manufactured at LGES’s production facility in Poland. The company will supply high-capacity LFP long-cell batteries with enhanced energy efficiency and safety, high energy density compared to conventional LFP solutions, and Liquid Cooling technology that optimizes performance and reliability, according to a media release.

“This project is one of the largest ESS initiatives led by LG Energy Solution in Europe,” said Hyung Kim, Head of the ESS Battery Division at LG Energy Solution. “By launching LFP-based products designed specifically for the European market and leveraging our local production capabilities, we have maximized customer value.”

State-owned PGE supplies electricity to nearly 6 million households, businesses and institutions in Poland. PGE plans to invest about USD 4.7 billion in battery storage projects to hike its storage capacity to over 17,000 megawatt hours and power 2.5 million households as Poland makes a transition from coal to renewable energy.  

“We are excited to enter a new era of energy storage with the construction of our first large-scale battery energy storage facility in Żarnowiec,” said Dariusz Marzec, President of the Management Board of PGE Polska Grupa Energetyczna. “Our partnership with LG Energy Solution marks a major milestone in our commitment to advancing Poland’s clean energy transition, and we look forward to strengthening our collaboration to foster sustainable growth in the region.”

By bolstering LGES’s position in future public tenders for European state-owned energy companies, this project is set to expand the company’s footprint in the regional grid-scale ESS market. To nurture its ESS business, the South Korean company is leveraging its “Made in Europe” manufacturing capabilities to meet the demands of European customers and governments prioritizing locally produced solutions, the media release said. This strategy also seeks to enhance market presence, unlock new business opportunities, and highlight the quality and competitiveness of locally made products.