OCI Energy, LGES to supply solar power to U.S. utility
OCI Energy, a subsidiary of South Korea’s OCI Holdings, signed a strategic partnership with LG Energy Solution (LGES) and Texas-based utility CPS Energy to supply solar energy in the United States using U.S.-made energy storage systems (ESS).
OCI Holdings announced on Tuesday that OCI Energy signed a memorandum of understanding on May 26th, 2025, with LG Energy Solution’s ESS subsidiary Vertech and CPS Energy at OCI Building in Seoul. The collaboration aims to expand ESS infrastructure across North America.
Under the partnership, Vertech will supply batteries manufactured in Michigan from June 2025, and OCI Energy will use them to store solar energy and deliver electricity to CPS Energy, which serves 1.28 million households across Texas.
The companies plan to begin with the Alamo City ESS Project in Bexar County, Texas, which will consist of a 120-megawatt (MW) solar facility and a 480-megawatt-hour (MWh) ESS across a 140,000-square-meter site. OCI Energy will oversee project development, financing, construction, and operations, with plans to supply power to the San Antonio area for 20 years – enough to support approximately 41,000 households per day.
The agreement also positions OCI Energy to scale its 13-project pipeline totaling 3 gigawatts (GW) in ESS capacity across the United States.
OCI Holdings said the partnership reflects its strategy to minimize geopolitical risk, including tariffs and trade uncertainties, by working with LG Energy Solution, which operates a U.S.-based production facility in Holland, Michigan.
In addition to the ESS initiative, OCI Holdings will invest $265 million to build a solar cell manufacturing plant in San Antonio, Texas. The facility is scheduled to start operations in the first half of 2026 with an annual capacity of 1 GW, with plans to expand this further later in the year.
According to the Center for Strategic and International Studies (CSIS), electricity demand from AI data centers in the United States is projected to surge from 4 GW in 2024 to 84 GW by 2030. Texas in particular has become a major hub for AI infrastructure, hosting companies suchbas OpenAI, Oracle, and Crusoe Energy.
By Pulse
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