LG Chem, the world's largest automotive battery maker, will supply lithium ion batteries to the rooftop solar company Sunrun, second largest solar energy company in the U.S.
With this deal, LG Chem will be able to compete with electric car maker Tesla Motors, which unveiled its own home battery packs, called Powerwalls, last year.
Sunrun has been using Tesla batteries in its home storage systems in Hawaii since early this year, and this deal will put LG to its list of suppliers.
“Tesla makes all the headlines, but LG manufactures most of the lithium ion batteries,” Sunrun Executive Chairman Ed Fenster said in an interview.
The Financial Times reported that LG Chem joined hands with Sunrun to compete against Tesla led by Elon Musk. Tesla released a home battery Powerwall last year.
Home battery systems allow customers to store solar power generated during the day for use after sunset. A Sunrun official said, "LG Chem's ESS technology would contribute to helping American households use clean energy at an affordable price."
Even in the electric car battery market, the company is also in a rival relationship with Tesla since the former signed last year to supply electric car batteries to Paraday Future, a competitor of Tesla.
