LG Chem expands into solar storage

Lithium-ion battery manufacturer LG Chem has announced plans to expand its footprint in the Australian residential solar storage market. With its expertise and legacy in the IT and automotive battery industry, the company has more recently indicated interest in the energy solar storage (ESS) market.

LG Chem entered the Australian market in mid-2015 with the RESU6.4EX product and is supported by its two main distributors: Solar Juice and Supply Partners. The company has supplied 600 units since its launch and is banking on a five-fold increase in growth over 2016. It expects even greater growth once the feed-in-tariffs (FiT) come to an end in 2017.

“This could be a critical decade for Australia. There is a massive sustainability potential that is yet to be fully tapped,” said Changhwan Choi, manager for Australian business development.

“We see a quiet solar revolution brewing and we strongly believe that LG Chem will be at the forefront of this transformation to help unlock the true value of solar storage and better enable the ecosystem. We welcome competition too. We are positive that when more people adopt the RESU6.4EX in Australia, the market will appreciate the quality, efficiency and cost-competitiveness of our offering.”

LG Chem’s decision to expand into the Australian market is fuelled by the country’s increased recognition of the importance of solar power generation and storage given the highest average solar radiation per square metre of any continent in the world. Solar energy systems will also play a critical role in tackling climate change. According to market research company Navigant Research, the ESS market is set to grow from its current level of US$1.1 billion (1.0 billion euros) to US$7.4 billion within the next five years.

A new policy paper released this month by the Clean Energy Council of Australia entails a slew of initiatives that would help increase the uptake of the battery storage in the country. One of the key support measures is to design new “tariffs that can allow consumers to realise the economic benefits of an investment in the technology”.