AES Energy Storage and LG Chem announced a multi-year agreement that provides access to a gigawatt-hour of lithium-ion battery capacity with the option to procure more capacity for the AES Advancion 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.
The global grid-scale energy storage sector has entered a new growth phase, with more than 1,400 MW of advanced energy storage projects announced or in operation today, compared to less than 60 MW just six years ago.
Navigant Research projects that more than 11 GW of energy storage capacity will be installed annually by 2020 across 22 countries. AES previously announced installations for various customers in six countries totaling 384 MW in operation, construction, or late stage development.
This agreement leverages LG Chem’s manufacturing and supply chain from the transportation sector and ensures access to the most cost-effective, high quality batteries available to supply Advancion.
The supply agreement covers battery modules with configurations ranging from 30 minutes to 4 hours of discharge duration. AES and LG Chem have also agreed to collaborate on joint development initiatives that will ensure continued competitiveness of the Advancion product in meeting the requirements of utilities and system operators around the world.
In 2014, LG Chem was the first of several battery manufacturers to complete the Advancion Certification process and become a qualified supplier of batteries for Advancion 4.