LG Energy Solution to supply batteries for Google's largest solar-ESS project

LG Energy Solution will supply batteries for Google's largest solar and energy storage system (ESS) project to date. As surging AI adoption drives up power demand at data centers, the company is leveraging its North America-based production capabilities to land a string of large-scale ESS contracts.

Google and Cypress Creek Renewables, a US independent power producer, announced Tuesday that they would develop the "Steel River Energy Center" project, with LG Energy Solution batteries selected for the initiative.

The project is a large-scale energy infrastructure development combining solar power generation with ESS. Google and Cypress Creek Renewables plan to build an initial ESS with a capacity of approximately 2GWh, targeting commercial operation in 2029. Storage capacity is to be expanded to 2.9GWh in the future.

Google will purchase all electricity generated by the project in its early phase, expanding its use of clean energy and improving grid stability. The company described the project as the largest solar-ESS initiative in its global portfolio.

Big tech power demand is rising rapidly amid the spread of AI. According to Bloomberg NEF, Google's electricity consumption grew 37 percent last year from the previous year, while Microsoft's rose 24 percent. Google, Meta, Amazon and Microsoft together accounted for 49 percent of all corporate renewable energy purchase agreements globally last year, driving demand for large-scale solar and ESS projects.

The latest contract follows LG Energy Solution's deal in May to supply batteries for a data center project by US utility DTE Energy, further expanding the company's footprint in large energy infrastructure projects tied to AI power demand. The company will supply its "JF2 DC Link," a lithium iron phosphate (LFP)-based ESS solution manufactured in North America.

Industry observers said LG Energy Solution's local production capabilities were a key factor in securing the contract, as tightening US regulations on Chinese-made batteries and supply chains have made domestic manufacturing a competitive advantage. Google and Cypress Creek Renewables underscored that not only batteries but also solar panels and structural steel for the project would all be sourced from North American supply chains.

LG Energy Solution currently produces ESS batteries at four North American facilities — in Holland, Michigan; the L-H Battery Company in Ohio; Ultium Cells in Tennessee; and Nexstar in Canada. A factory in Lansing, Michigan, is also set to begin ESS battery production later this year. Through these operations, the company plans to expand its global ESS production capacity to more than 60GWh by year-end, with more than 50GWh of that secured in North America.