LG Chem, Ltd., one of the world’s leading manufacturers of lithium-ion batteries has announced its plans to expand its footprint in the Australian residential solar storage market. With its expertise and legacy in the IT and Automotive battery industry, LG Chem has more recently established itself as a clear leader in the energy solar storage (ESS) market today.
LG Chem entered the Australian residential storage market in July 2015, with the RESU6.4EX. The product has the highest energy density in the world, which means it is the smallest in volume compared to the amount of energy it can deliver. Its quality has already been proven in Germany and Japan – the two markets where LG Chem has seen the most uptake of its residential storage systems to date. The company has also seen exponential traction for the RESU6.4EX in Australia more recently.
Untapped opportunity in Australia for solar energy storage
LG Chem believes it can play a key role in Australia’s solar renaissance. In a less than year since the company’s entry into the Australian market, LG Chem is already making significant strides. Supported by its two main distributors Solar Juice and Supply Partners, the company supplied 600 units since it launched in Australia and expects to see a five-fold increase in growth this year, supplying more than 3000 units in 2016. Once the feed-in-tariffs (FiT) come to an end in Australia in 2017, the company expects to see even greater growth.
“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 fueled 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 1.1 billion US dollars (1.0 billion euros) to $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”.
LG Chem’s list of global customers in the automotive industry has broadened over the years since it began delivering its lithium ion battery, such as GM, Ford, Chrysler, Audi, Daimler, Renault, Volvo, Hyundai, and various Chinese manufacturers.