EG4 Secures Multibillion-Dollar Battery Deal, Expands US Production
EG4, a leading Texas-based energy storage supplier, has secured a significant contract and expanded its production plans. The company has partnered with LG Energy Solution (LGES) for a six-year, multibillion-dollar deal to supply 13.275 GWh of lithium-iron phosphate battery cells, manufactured in the United States. This comes as EG4 plans to assemble power inverters at its base and expand its US production footprint.
EG4 has experienced remarkable growth, becoming one of the largest suppliers of residential energy storage in the USA. The company's success can be attributed to its ability to tap into new markets, with only 13% of its revenue coming from California. This expansion is set to continue with plans to enter the underdeveloped commercial battery market in the USA.
The recent partnership with LGES ensures a steady supply of high-quality, competitively priced cells. These cells, despite expected 60% import tariffs, will be among the best priced on the US market. The cells are backed by a 15-year warranty, offering improved terms compared to many other suppliers. EG4 has secured supplies from CATL, LG Energy Solution, and CALB for the delivery of these cells over the next six years, with LGES's US production set to begin in the first quarter of 2025.
EG4 achieved close to 1 GWh in sales over the past year and has around 500 employees. The company's growth is a testament to its ability to adapt and innovate in the energy storage sector.
EG4's latest partnership and expansion plans signal a significant step forward for the company. With a strong supply chain secured and a competitive pricing strategy, EG4 is well-positioned to capture a larger share of the US energy storage market. The company's success in new markets and its commitment to US production bode well for its future growth and impact on the energy storage industry.
