LG Energy Solution is stepping up its expansion into the U.S. residential energy storage market through a strategic partnership with global power management leader Delta Electronics. Under the agreement announced Tuesday, LG will supply 4 gigawatt-hours (GWh) of lithium iron phosphate (LFP) battery systems to Delta over the next five years.
All battery units will be manufactured at LG Energy Solution’s U.S. facility in Holland, Michigan, where the company is currently establishing a dedicated ESS production line. Production is slated to begin in the second half of 2024, with batteries destined for residential applications across the United States.
The deal was signed through LG Energy Solution Vertech, a wholly-owned U.S. subsidiary focusing on energy solutions for homes and businesses.
Delta Electronics, known for its cutting-edge inverter technology and a client roster including Tesla and Apple, plans to launch an all-in-one residential ESS product based on LG’s LFP batteries in the latter half of 2025. Delta’s hybrid inverters integrate solar power systems with energy storage, optimizing both generation and usage.
The partnership is strategically timed. The U.S. government is preparing to increase tariffs on Chinese-made energy storage batteries, creating a more favorable environment for domestic production. By combining LG’s U.S.-based manufacturing with Delta’s technical expertise, the companies aim to capture a significant share of the growing residential ESS market.
According to Fortune Business Insights, the U.S. home battery market is projected to grow from $900 million in 2022 to $4.7 billion by 2030, representing an average annual growth rate of over 23%.
“Local manufacturing is more than just a logistics advantage—it’s a competitive necessity under current trade conditions,” said an LG Energy Solution spokesperson. “Our collaboration with Delta underscores our commitment to building a resilient and sustainable energy ecosystem in the U.S.”
With rising electricity costs, increasing adoption of solar power, and government incentives favoring clean energy, demand for residential energy storage is expected to accelerate. LG and Delta aim to offer a turnkey solution that meets both technical and regulatory demands of the American market.