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DTE Energy announced plans to invest approximately $1.6 billion in battery energy storage projects across Michigan through a new agreement with LG Energy Solution Vertech.

The partnership will support the development of eight battery storage projects scheduled for deployment over the next two years. According to the companies, the systems will provide a combined 1.5 gigawatts of capacity and 6 gigawatt-hours of energy storage.

The battery systems will be manufactured at LG Energy Solution Vertech’s facility in Holland, Michigan. The companies estimate the projects could generate approximately $2.3 billion in economic impact while supporting manufacturing, construction, and operations jobs across the state.

Battery energy storage systems are designed to store electricity during periods of lower demand or excess generation and discharge power during peak demand periods. Utilities have increasingly invested in large-scale storage projects to support grid reliability and integrate renewable energy resources.

DTE Energy stated that the projects are also intended to support increasing electricity demand associated with data center growth while helping the company meet Michigan’s renewable and clean energy standards.

The company noted that battery storage systems linked to its approved agreement for an Oracle data center project in Saline Township are expected to contribute toward Michigan’s 2030 energy storage targets.

The announcement comes as utilities nationwide continue expanding investments in energy storage infrastructure amid rising electricity demand and ongoing energy transition efforts.