LS Industrial Systems has acquired the energy grid tie (EGT) business unit of Parker Hannifin, the largest energy storage system (ESS) company in North America.
The Korean company announced on Dec. 5 that it has signed a contract to take over all assets of the EGT business unit including production facilities and human resources from Parker Hannifin and established LS Energy Solutions, a subsidiary in North America.
Parker Hannifin’s EGT business unit started the ESS business in 2007 and is the largest ESS provider in North America, with cumulative supply exceeding 400MW. It grew rapidly by penetrating U.S. and overseas markets including Europe, Latin America, Australia and Southeast Asia.
LS Industrial Systems has launched LS Energy Solutions in Charlotte, North Carolina, as a subsidiary in North America. It becomes a grandchild company for LSIS. Cumulative supply of both companies is 700MW, which is the world's largest in the industrial (utility, C & I) ESS market.
"Cumulative worldwide ESS capacity will reach about 125GW by 2030, about 66-fold increase from last year. Eight countries including Korea, the U.S. and China, will account for about 70% of the total ESS capacity,” said Koo Ja-kyun, CEO of LS Industrial Systems. "Our long-term goal is to become a global player that will lead industry trends. We will move ahead of our competitors to grab a larger share of the market."
The ESS market is expected to grow sharply as global renewable energy supply is on the rise. Global ESS manufacturers are expected to invest over US$100 billion in the ESS market from 2016 to 2030. Next year, the world ESS market will reach 17GWh (in terms of batteries), which is 40% larger than this year. In particular, the U.S. and European markets are expected to grow rapidly from US$1.6 billion last year to US$18.4 billion in 2025.