South Korea’s electric vehicle battery maker LG Energy Solution (LGES) announced that it had acquired NEC Energy Solutions, a grid battery integrator based in the U.S.
LG Energy Solution has acquired 100% shares of NEC Energy Solutions from its parent, NEC Corporation. With the acquisition, LGES will set up a corporation under a new name, LG Energy Solution Vertech.
Following the acquisition of NEC Energy Solutions’ technologies, LG Energy Solution will offer fully integrated AC and DC storage systems, all supported by operations services modified to meet clients’ needs; such services could include equipment installation, remote monitoring service, and scheduled maintenance.
LG Energy said the acquisition would help expand its Energy Storage System (ESS) business offerings.
“Through the deal, LG Energy Solution will accelerate its energy storage business and ultimately better provide our clients with a more comprehensive ESS program that meets the growing demand,” said Youngsoo Kwon, CEO of LG Energy Solution.
“We are confident we can expand on the ESS business by escalating our competitiveness in terms of quality and ultimately become a leading global player within the industry,” he added.
Earlier in January 2021, LG Energy Solution made a market debut on January 27, 2022. The market capitalization of LG Energy stood at $98.3 billion at the close of trading on local stock exchanges. The firm’s stock price opened at 597,000 KRW ($496), nearly 99% up from its initial public offering price of 300,000 KRW ($250) apiece before falling as much as 25% in early trade and ending the day 68.3% higher.
According to Mercom’s Q4 2021 and annual funding and M&A report for storage, grid, and efficiency, there were 24 M&A transactions in the battery storage category in 2021.
