LG Energy Solution Takes Over US-based NEC Energy Solutions

South Korean lithium-ion battery manufacturer LG Energy Solution (LG ES) has acquired US-based sector player NEC Energy Solutions from NEC Corporation for an undisclosed sum.

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The news was unveiled on Friday by BDA Partners, which served as the exclusive financial advisor to LG on the transaction. Japan’s NEC Corporation has transferred all shares in NEC Energy Solutions, a Massachusetts-based energy storage system integration and solutions subsidiary, to LG Energy Solution, Ltd.

The acquired business has experience gained from 986 MW of energy storage projects in North and South America, Europe and Asia. It offers a software control suite called AEROS.

The announcement says that LG ES will use the acquisition to grow its energy storage business in North America. The purchase also allows the company to establish itself as a one-stop energy storage system (ESS) solution provider that offers the full range of services.

Before the acquisition, LG ES’ activities revolved around automotive, mobility, IT and ESS batteries. The firm has customers in power grids, UPS and the commercial and residential sectors.

LG Energy Solution is among the world’s biggest manufacturers of electric vehicle batteries, as well as serving numerous other sectors including consumer electronics. It also makes its own residential battery energy storage systems and supplies cells and other components to many developers and integrators in the commercial, industrial and grid-scale stationary energy storage industry segments. It has been primarily focused on high energy density nickel manganese cobalt (NMC) battery chemistry.

The deal offers the new owner a potential high level of vertical integration within the energy storage system (ESS) space. BDA Partners said that the NEC ES takeover will enable LG Energy Solution to become a one-stop ESS solution provider, engaged in services from battery installation to full system solutions. It will also seek to expand its presence in the North American ESS market.

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