SK Group is strengthening its foothold in the North American energy storage market with plans to construct a second 100 MW energy storage system (ESS) in southern Texas. The new facility is expected to begin operations next year, following the launch of its first 100 MW project in the region last month. The expansion aligns with SK’s broader goal of increasing its U.S. ESS capacity to 900 MW by 2029.

The initiative is led by SK Gas and SK EterNix, which jointly invested 87.1 billion won ($60.1 million usd) in December to establish GridFlex, a U.S.-based corporation focused on energy storage. SK Gas holds an 80% stake in GridFlex, with SK EterNix owning 20%. GridFlex has also partnered with Apex Clean Energy to form SA Grid Solutions, aiming to accelerate its presence in the sector.

The U.S. ESS market is set for significant growth, with its size projected to more than double from $106.7 billion in 2024 to $263.5 billion by 2032. The rising integration of renewables, especially in Texas and California, is fueling demand, as ESS operators profit from storing energy at low prices and selling when prices rise.

Other Korean companies are also expanding in the U.S. ESS market. Samsung SDI recently secured a 437.4 billion won ($302 millon) contract to supply batteries to NextEra Energy, while Samsung C&T has partnered with LS Electric to develop a 500 MW ESS project. Additionally, LG Energy Solution is set to begin mass-producing LFP batteries for ESS in Michigan later this year.

A South Korean multinational conglomerate, SK Group is the country’s second-largest chaebol (family-owned conglomerate) after Samsung Group. Headquartered in Seoul, it operates 186 subsidiaries and affiliates across various industries, including energy, chemicals, semiconductors, telecommunications, and IT services. The group is controlled by the estate of Chey Tae-won through SK Inc., with its energy and chemicals division forming the core of its business.

Source: businesskorea.co.kr