LG Energy Solution Vertech has announced a supply agreement with DTE Energy to deliver battery energy storage systems across eight projects in Michigan, representing a combined capacity of 1.5 gigawatts of power output or 6 gigawatt-hours of storage.

The projects will be completed over a two-year period, with all systems required to meet domestic content requirements.

Scope of the Agreement

The deal, announced on May 27, 2026, covers eight individual energy storage projects spread across the state of Michigan.

Together, the projects will deliver 1.5 gigawatts of battery storage capacity, equivalent to 6 gigawatt-hours of stored energy.

LG Energy Solution Vertech, the U.S. energy storage division of LG Energy Solution, will supply battery cells manufactured in Michigan, as well as other facilities in the United States and Canada, to support the full portfolio.

The battery energy storage systems are designed to store electricity during periods of excess generation and release that power to customers during peak demand periods.

According to the announcement, this function will reduce strain on the grid and decrease the need to cycle generation assets on and off as customer demand fluctuates throughout the day.

Executive Statements

Jaehong Park, chief executive officer and president of LG Energy Solution Vertech, said Michigan holds particular significance for the company as a key U.S. manufacturing region where many of its employees live and work.

Park stated that the partnership with DTE would bring Michigan-made energy storage to local communities and that expanding domestically produced energy storage projects creates opportunities for advanced roles in the state that support national energy needs.

Joi Harris, president and chief executive officer of DTE Energy, said the utility is committed to building a future for Michigan.

Harris noted that working with LG Energy Solution Vertech to bring more battery storage online through LG Energy Solution's Michigan manufacturing facility keeps Michigan at the forefront of technology and economic opportunity.

Harris cited the creation of good-paying jobs in communities, improvements in grid reliability for customers, and investment in clean energy solutions as central goals of the partnership.

Clean Energy Standards and Data Center Development

DTE Energy's expanding commitment to data center customers is identified in the announcement as a significant driver behind the increased battery energy storage activity in the state.

DTE stated it has identified the resources needed to reliably serve new data center customers without compromising service for existing customers, while remaining in compliance with Michigan's Renewable Portfolio Standard and Clean Energy Standard.

The announcement specifically referenced DTE's approved contract for the Oracle data center in Saline Township as an example of this dynamic.

According to the press release, the battery energy storage systems that Oracle is funding as part of that arrangement are, by themselves, sufficient to meet DTE's portion of Michigan's 2030 clean energy standard for battery storage.

This positions a single data center agreement as a meaningful contributor to the state's broader clean energy compliance framework.

Domestic Content and Michigan Manufacturing

A defining feature of the LG Energy Solution Vertech and DTE Energy agreement is its emphasis on domestic manufacturing.

All eight projects are structured to meet domestic content requirements, a condition that reflects both regulatory considerations and the companies' stated priorities around local economic development.

LG Energy Solution will draw on its Michigan manufacturing facility to supply battery cells for the projects, supplemented by production from other U.S. and Canadian facilities.

The dual emphasis on Michigan-based manufacturing and compliance with domestic content rules places the agreement within the broader context of efforts to build out a domestic clean energy supply chain.

Grid Reliability and the Role of Battery Storage

Both companies framed the agreement in terms of grid reliability and resilience. Battery energy storage systems occupy a growing role in utility planning as grids absorb larger shares of renewable generation, which can vary based on weather and time of day.

By storing surplus electricity and dispatching it during high-demand periods, these systems provide grid operators with a tool to balance supply and demand without relying solely on dispatchable generation assets.

The eight projects collectively representing 6 gigawatt-hours of storage capacity reflect a substantial commitment by DTE to this technology at a time when Michigan's clean energy targets require utilities to significantly expand non-carbon generation and storage resources.

The agreement with LG Energy Solution Vertech is intended to advance those goals while simultaneously keeping manufacturing activity and associated employment within the state.