IN Brief:
- The companies are exploring the supply of 1.5GWh of battery capacity in Europe and 0.5GWh in North America.
- Their non-binding agreement allows discussion of increasing the potential total supply to 4.5GWh.
- Energix's proposed 320MWh Jonava project in Lithuania is among the developments being considered for cooperation.
LG Energy Solution and renewable energy developer Energix have signed a non-binding memorandum of understanding to explore the supply of approximately 2GWh of battery energy storage systems across Europe and North America over the next 24 months.
The proposed cooperation covers approximately 1.5GWh of battery capacity for European projects and 0.5GWh for developments in North America. The companies will also examine whether the total volume could be expanded to 4.5GWh through their respective regional operations.
The agreement was signed at LG Energy Solution’s headquarters in Seoul on 27 October 2026. Energix develops and operates solar, wind and battery storage projects across several markets, with its development portfolio providing potential demand for equipment as projects advance towards procurement and construction.
The memorandum is not a binding battery supply contract. Actual equipment orders, volumes, technical specifications and delivery dates will depend on subsequent negotiations and the progress of individual developments. The proposed increase to 4.5GWh remains a possibility rather than an agreed procurement commitment.
The companies have previously worked together on Energix’s Nowe Czarnowo battery project in Poland. Their existing relationship provides a basis for considering further supply arrangements, although the earlier project does not determine the equipment configuration or commercial terms of future contracts.
One potential development is Energix’s Jonava renewable energy project in Lithuania, which includes a proposed battery installation of approximately 320MWh. Commercial operation is targeted for 2027. LG Energy Solution and Energix are discussing cooperation on the project, but the October agreement does not establish that an equipment order has been placed.
Battery energy storage projects combine electrochemical equipment with electrical conversion, monitoring and protection systems. Battery cells and modules store electricity as chemical energy, while power conversion equipment allows the stored energy to be exchanged with an alternating current electricity network.
The supply scope for an individual development depends on the commercial arrangements between the battery manufacturer, developer and engineering contractors. Some contracts cover battery cells and modules, while others include integrated containers, thermal management, control equipment and additional systems required for operation.
The proposed memorandum does not define a common equipment scope for all projects. Separate contracts will be required to establish who supplies the batteries, inverters, transformers, switchgear and other components, together with responsibilities for installation, testing, warranties and maintenance.
Battery systems use direct current internally. Grid-connected operation therefore requires power conversion equipment to control the flow of electricity into and out of the storage equipment. Inverters regulate charging and discharging while maintaining the electrical characteristics required by the site’s connection.
Transformers provide the necessary voltage interface, while switchgear and protection relays allow faults to be detected and isolated. At the plant level, control systems coordinate individual converters and manage the maximum import and export power permitted under the network connection agreement.
Battery management systems monitor conditions within the storage equipment, including cell voltage, temperature and state of charge. Charging and discharge commands must remain within those operating limits to avoid excessive electrical or thermal stress and maintain the equipment’s intended performance.
The memorandum’s 2GWh figure refers to energy storage capacity. It does not establish the combined power output of the future projects, because energy capacity and power rating are separate characteristics. Battery duration depends on the amount of energy available relative to the rate at which electricity is delivered.
For illustration, 2GWh of usable energy distributed across four-hour systems would correspond to approximately 500MW of total rated discharge power. If configured for two hours, the same energy capacity would correspond to approximately 1GW. Neither configuration has been announced for the proposed portfolio.
Individual projects may adopt different storage durations according to their intended operating duties. Batteries used to shift electricity from periods of high renewable generation to later demand peaks require enough energy capacity to sustain delivery, while applications involving shorter power adjustments may place greater emphasis on rapid response and power availability.
The appropriate design also depends on how a project connects to the network. A battery associated with a solar or wind installation may share electrical infrastructure with generation equipment, subject to export limits and operating controls. A standalone installation may instead have its own connection and dispatch arrangements.
The planned Jonava development is described as a hybrid renewable energy project. Its battery system would need to be integrated with the generating equipment and relevant network infrastructure, but the available information does not identify the final battery chemistry, discharge power, inverter supplier or operating strategy.
Across Europe, storage development is influenced by the relationship between renewable generation, electricity demand and the availability of suitable grid connections. Batteries can move energy between periods, although their ability to provide balancing or other services depends on the equipment specification and applicable market requirements.
North American installations face their own network and market rules, creating different procurement and operating requirements. Equipment selection must therefore reflect the technical and regulatory conditions of each project rather than assuming that a single configuration will apply across the entire proposed supply volume.
The memorandum gives LG Energy Solution an opportunity to compete for equipment orders linked to Energix’s development pipeline. It also gives Energix a potential supply partner as its projects progress, without removing the need for investment approvals, network agreements and binding procurement contracts.
LG Energy Solution has been expanding its stationary energy storage activities beyond its established battery manufacturing business. Its cooperation with Energix would extend an existing customer relationship into a larger range of European and North American developments, provided the parties conclude definitive agreements.
The next milestones will involve identifying the projects covered by the proposed relationship, agreeing equipment specifications and executing individual supply contracts. Only those subsequent commitments will establish the confirmed capacity, delivery programme and commercial value of the partnership.
