LG Energy to supply battery storage for Google’s largest US solar project

LG Energy Solution Ltd., the world’s third-largest battery manufacturer, is set to supply battery energy storage systems for Google’s largest solar energy project in the US.

The deal highlights the South Korean company’s competitive advantage in deploying high-capacity storage solutions rapidly as Big Tech companies scramble to power artificial intelligence (AI) data centers.

Google and Cypress Creek Energy, a US independent power producer, on Tuesday officially broke ground on the Steel River Energy Center in Mississippi County, Arkansas.

“Steel River is the largest solar project with energy storage in the country,” Cypress Chief Executive Officer Kevin Smith said in a statement.

The hybrid renewable energy facility will utilize battery energy storage systems (BESS) from LG Energy Solution Vertech Inc., a wholly owned US subsidiary of the South Korean battery giant, assembled in the country with battery cells manufactured entirely in North America, predominantly at US factories, according to Cypress.

The project’s first two phases will deliver 1.6 gigawatts (GW) of new solar generation and 1.9 gigawatt-hours (GWh) of new battery storage to the local grid. Once fully complete, the three-phase project will provide 2.5 GW of solar and 2.9 GWh of battery storage to the local grid system by 2029.

Google will buy the entire initial power output to supply its regional data centers. According to BloombergNEF, Google’s power consumption jumped 37% in 2025.

Google, Cypress, and LG Energy have not disclosed the financial terms of the BESS supply deal. However, battery industry sources in Seoul estimate the contract is worth hundreds of millions of dollars.

LG Energy will supply its JF2 DC Link, a lithium iron phosphate (LFP)- based BESS solution produced in North America.

The company’s established North American manufacturing footprint was a key factor in securing the order, according to industry sources.

LG Energy produces ESS batteries at four North American sites: Holland, Michigan; the L-H Battery Company joint venture in Ohio; Ultium Cells LLC in Tennessee; and NextStar in Canada. A fifth plant in Lansing, Michigan, is set to begin operations this year.

The deal indicates that LG Energy is expanding its presence in the booming BESS market, which has emerged as a key growth area for battery makers, industry sources said.

Big Tech companies have become major buyers in the solar and ESS market as s AI workloads multiply exponentially, boosting data center electricity demand.

Google, Meta Platforms Inc., Amazon.com Inc. and Microsoft Corp. accounted for 49% of global corporate renewable energy purchase agreements last year.

ESS technology stores electricity generated at power plants for use when needed and is considered essential infrastructure for data centers.

LG Energy plans to expand its global ESS production capacity to more than 60 GWh by the end of this year, with more than 80%, or over 50 GWh, concentrated in North America.

Its cumulative ESS order backlog reached 140 GWh at the end of last year.