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Shares of LG Energy Solution jumped sharply on Thursday after the company secured a major battery supply agreement tied to large-scale energy storage projects in the United States, reinforcing investor confidence in the company’s fast-growing North American business.

The stock surged as much as 16.56% during trading after LG Energy Solution’s U.S. subsidiary signed a deal to provide battery cells for multiple energy storage projects being developed by DTE Energy in Michigan. The agreement is reportedly valued at around $1.6 billion, making it one of the company’s most significant energy storage contracts in the U.S. market to date.

The projects are expected to play a major role in strengthening grid reliability and expanding renewable energy infrastructure across the region.

According to LG Energy Solution Vertech, the agreement covers eight large-scale battery storage facilities capable of delivering 1.5 gigawatts of storage power and approximately 6 gigawatt-hours of total energy capacity. These systems allow excess electricity generated during periods of lower demand to be stored and redistributed when electricity usage spikes, helping stabilize the power grid and improve energy efficiency.

Energy storage systems have become one of the fastest-growing segments of the global clean energy market as utilities increasingly rely on battery technology to support solar and wind power integration.

The deal highlights LG Energy Solution’s aggressive push into the U.S. energy storage sector at a time when demand for domestically manufactured battery systems is accelerating. The U.S. government’s clean energy incentives and industrial policies have encouraged utility companies and developers to prioritize locally produced battery components, creating significant opportunities for manufacturers with large North American production networks.

“As more U.S.-made energy storage projects are added to the grid, we are creating advanced manufacturing opportunities that support national energy infrastructure,” said Jaehong Park, CEO and president of LG Energy Solution Vertech.

The South Korean battery giant has been steadily expanding its footprint in the American market beyond electric vehicle batteries. While the company remains one of the world’s leading EV battery suppliers for automakers including General Motors, Hyundai, Tesla suppliers, and Honda joint ventures, executives are increasingly focusing on stationary battery storage as a long-term growth engine.

Industry analysts expect the global energy storage market to grow rapidly over the next decade as countries modernize aging electricity grids and accelerate renewable energy adoption. Research firms estimate that worldwide battery storage deployments could increase several times over by 2030, driven by rising electricity demand, artificial intelligence-related power consumption, and the transition away from fossil fuels.

LG Energy Solution appears to be positioning itself aggressively for that shift.

The company currently operates one of the largest battery manufacturing networks in North America. Its energy storage production infrastructure includes three standalone manufacturing facilities and two joint venture plants across the region.

Earlier this year, the company announced plans to secure more than 50 gigawatt-hours of annual energy storage battery production capacity in North America by the end of the year. That scale would significantly strengthen its ability to compete with rivals including Tesla Energy, CATL, Samsung SDI, Panasonic, and Fluence in the rapidly expanding storage market.

The latest agreement also reflects a broader transformation happening inside the utility industry. Electricity providers across the United States are investing billions into grid-scale storage systems to manage rising renewable energy generation and improve resilience during periods of peak electricity demand.

Battery storage has become increasingly important because renewable energy sources such as solar and wind do not produce power consistently throughout the day. Large storage facilities help utilities balance electricity supply and demand by storing excess energy and releasing it when needed.

Michigan, where the new projects will be developed, has become one of several U.S. states accelerating investments in clean energy infrastructure and battery storage capacity as utilities prepare for higher electricity consumption and stricter emissions targets.

For investors, the contract represents more than just a major revenue boost. It signals that LG Energy Solution is successfully diversifying beyond the highly competitive electric vehicle battery market into another fast-growing segment with long-term demand potential.

The strong market reaction also reflects growing optimism surrounding companies tied to America’s energy transition and domestic manufacturing expansion. As governments continue pushing for energy independence and cleaner electricity systems, battery manufacturers with established U.S. production capabilities are increasingly viewed as strategic players in the next phase of industrial growth.

With energy storage demand expected to rise sharply over the coming years, LG Energy Solution’s latest deal positions the company at the center of one of the most important shifts currently reshaping the global power industry.