SEOUL, May 25 (Yonhap) — South Korean battery maker LG Energy Solution Ltd. said Tuesday it will voluntarily replace lithium-ion batteries used in energy storage systems (ESS) over potential fire risks, which is estimated to cost around 400 billion won (US$356.6 million).
LG Energy, the wholly owned subsidiary of LG Chem Ltd., said ESS batteries produced in the Nanjing factory in China between April 2017 and September 2018 are subject to the replacement.
“The company concluded (the batteries) pose potential fire risks when combined with the harsh external environment,” the company said in a release.
The company said it will consult with its clients at home and abroad to replace the batteries and take necessary actions.
An ESS is largely composed of several lithium-ion batteries to store electricity generated by renewable energy, such as solar and wind power, in a battery and discharge it when necessary.