South Korea's premier battery manufacturer, LG Energy Solution Ltd (LGES), announced on Wednesday it has secured a contract to supply batteries for a solar-linked energy infrastructure project associated with the U.S. internet giant Alphabet (Google), with the deal valued in the trillions of Korean won.

On Tuesday local time, Alphabet (Google), in partnership with independent renewable energy producer Cypress Creek Energy, unveiled the large-scale solar initiative named the Steel River Energy Center and confirmed the use of LG Energy Solution's batteries.

The project is scheduled to commence operations in 2029, with an initial energy storage system capacity of 2 gigawatt-hours, which is planned for subsequent expansion to 2.9 gigawatt-hours, according to the announcement.

LG Energy Solution intends to supply lithium iron phosphate batteries for this project, manufactured at its U.S. facilities.

The announcement stated that the project will exclusively utilize photovoltaic modules produced by the U.S. company First Solar, alongside battery energy storage systems from LG Energy Solution Vertech. The complete energy storage equipment will be assembled in the United States, with all battery cells produced in North America, predominantly at domestic U.S. manufacturing plants.

LG Energy Solution Vertech is the U.S. subsidiary of LG Energy Solution.

The Steel River Energy Center is an integrated solar and storage project, spearheaded by Alphabet (Google), designed to meet rapidly growing electricity demands driven by factors such as data center expansion.

Amid a prolonged downturn in the electric vehicle market, LG Energy Solution is expanding its energy storage battery production capacity in the United States to offset pressure from the weaker EV business.

The company has recently commenced production of energy storage cells at two joint venture plants: one in partnership with General Motors and another established with Honda Motor Co., named L-H Battery Company.

Furthermore, the company plans to initiate production of energy storage cells later this year at its wholly-owned battery factory in Michigan.