Shares of LG Energy Solution surged after the company announced a two-year agreement to supply energy storage system (ESS) batteries to DTE Energy in a deal worth $1.6 billion, or about 2.4 trillion won, covering a total of 6 gigawatt-hours (GWh).
As of 9:11 a.m. on Wednesday, LG Energy Solution shares were trading at 428,000 won, up 44,500 won, or 11.6%, from the previous session.
DTE Energy, the buyer in the ESS battery agreement, is Michigan’s largest integrated energy utility. The company supplies electricity to roughly 2.3 million customers and natural gas to about 1.3 million customers, primarily across southeastern Michigan’s urban and industrial regions.
Through the ESS battery supply agreement, DTE Energy plans to move forward with eight major grid infrastructure projects, including an artificial intelligence data center project for Oracle being built in Saline Township, Michigan.