DTE Energy announced a $1.6 billion partnership with South Korea’s LG Energy Solution Vertech to build eight battery energy storage projects in Michigan.
The projects will total 1.5 gigawatts of capacity, equal to 6 gigawatt-hours of storage, and are intended to capture excess electricity for later distribution and reduce start-stop generation pressure, the company said in an announcement.
DTE chief executive Joi Harris said the deal is expected to generate $2.3 billion in economic impact, create jobs, boost grid reliability and support the state’s clean-energy targets.
Shares of LG Energy Solution jumped more than 15% in Seoul after the update.
LG Energy Solution has been expanding its U.S. energy-storage business and operates three standalone production facilities and two joint-venture plants in North America.
In April the company said it aims to secure over 50 GWh of regional energy-storage battery production capacity by year-end.
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DTE framed the investment as part of a broader effort to keep electricity affordable and reliable, linking its rate-plan timing to a supported data-center project launching by the end of 2027 and required approvals.
The announcement also cited rising U.S. demand for storage capacity, pointing to Ford Motor Company’s move into battery storage via Ford Energy and its 20 GWh annual deployment target in Kentucky.