LG Energy Solution (373220) is strengthening its foothold in the North American energy infrastructure market by supplying batteries for Google’s largest-ever solar and energy storage system (ESS) project.

According to industry sources on the 15th, Google and independent power producer (IPP) Cypress Creek Energy (CCE) unveiled a massive energy infrastructure project called the “Steel River Energy Center” on the 14th (local time) and announced plans to deploy batteries from LG Energy Solution.

The project aims to address surging power demand driven by the expansion of artificial intelligence (AI) data centers. Google plans to build ESS facilities linked to solar power generation and purchase the entire initial output to expand clean energy usage and enhance grid stability.

Targeting operation by 2029, the Steel River Energy Center will initially use approximately 2 GWh of batteries, with plans to eventually scale ESS battery deployment to 2.9 GWh. Google described the project as “the largest solar and ESS project in our global portfolio.” The contract value is reported to be in the hundreds of billions of won (hundreds of millions of US dollars).

LG Energy Solution will supply its lithium iron phosphate (LFP)-based ESS solution, the “JF2 DC Link,” manufactured locally in North America. The JF2 DC Link is a product with enhanced energy density and safety, optimized for large-scale power storage.

With this contract, LG Energy Solution has secured another mega-scale energy infrastructure project directly tied to Big Tech’s AI power demand, following the DTE Energy data center project in May. This is viewed as a result of the competitiveness built through its localized production system established across North America.

LG Energy Solution currently produces ESS batteries at four North American sites: Holland, Michigan; the L-H Battery Company in Ohio; Ultium Cells in Tennessee; and NextStar in Canada. The company also plans to begin ESS battery production at its Lansing, Michigan plant within the year.

Through these efforts, the company aims to expand its global ESS production capacity to over 60 GWh by the end of this year, with more than 50 GWh of that secured in North America. As of last year, LG Energy Solution had recorded approximately 140 GWh in cumulative ESS orders and continues its streak of new orders this year.

The race among Big Tech companies to secure power amid the AI boom is intensifying. According to market research firm BloombergNEF (BNEF), Google’s electricity consumption increased by 37% last year, while Microsoft’s rose by 24%. The four Big Tech firms—Google, Meta, Amazon, and Microsoft—accounted for 49% of global corporate renewable energy purchase agreements last year.

Amid this demand surge, the tightening of US regulations on Chinese supply chains is acting as another variable. A battery industry insider analyzed, “As regulations on Chinese supply chains strengthen, demand for battery products manufactured locally in the US is increasing further. LG Energy Solution’s preemptive localization strategy, as the only company with a complete local production system in North America, appears to have positively influenced the winning of this project.”

Google emphasized that the project will utilize US-made solar modules and that all battery cells will be produced in the United States, making its commitment to local supply chain utilization clear. LG Energy Solution’s battery supply aligns with this strategy and is expected to further solidify its leadership in the North American ESS market.