As electric vehicle demand cools in some markets, battery makers are increasingly turning to another fast-growing source of demand: the large battery systems that store renewable electricity and stabilise power grids.
LG Energy Solution, South Korea's largest battery maker, has signed a non-binding memorandum of understanding with Energix, a renewable energy developer, to supply about 2 GWh of energy storage systems over 24 months, according to a SustainabilityOnline report on Wednesday, October 28.
Under the agreement, about 1.5 GWh would be supplied in Europe and 0.5 GWh in North America. The two companies are also discussing a potential expansion of up to 4.5 GWh. The first project under the partnership is a 320 MWh energy storage system in Jonava, Lithuania.
Changbeom Kang, a senior executive at LG Energy Solution, said in the announcement that the partnership reflected the company's commitment to supporting the growth of renewable energy through reliable storage solutions.
Why storage matters
Solar and wind power produce electricity only when the sun shines and the wind blows, which does not always match when people need power. Battery energy storage systems (BESS) store surplus renewable electricity and release it when demand is high or generation is low. They also help grid operators maintain stable frequency and voltage, a service that becomes more important as renewables replace conventional power plants.
As countries add more renewable capacity, demand for storage has grown rapidly. Grid-scale storage installations have risen sharply worldwide, and analysts expect strong growth to continue for years.
The Lithuania project
Lithuania has made energy independence a priority, particularly since Russia's invasion of Ukraine in 2022. The Baltic states disconnected from the Russian-controlled power grid and synchronised with the continental European grid in 2025, increasing the need for local resources to keep the grid stable. Battery storage plays an important role in this effort, and Lithuania has been investing in storage alongside wind and solar power.
The 320 MWh Jonava project will provide an early test of the LG Energy Solution and Energix partnership.
A non-binding agreement
It is important to note that the memorandum of understanding is non-binding, meaning that the two companies have agreed on a framework but have not signed firm supply contracts for the full volume. MoUs of this kind are common in the energy industry and signal intent, but the final volumes depend on project development, financing and regulatory approvals.
Battery makers pivot to storage
LG Energy Solution and other battery makers have been expanding their energy storage businesses as growth in electric vehicle demand has slowed in some markets, notably the United States, where policy changes have reduced support for electric vehicles. Energy storage offers an alternative source of demand for battery production lines, particularly in North America, where battery makers have invested heavily in new factories.
Korean battery makers have also been shifting towards lithium iron phosphate (LFP) chemistry for storage, which is cheaper and safer than the nickel-based chemistries traditionally used in electric vehicles. Chinese companies such as CATL and BYD dominate the LFP market, and Korean manufacturers are working to compete by offering production outside China, which appeals to customers seeking to diversify their supply chains.
