NEC Corporation has confirmed the transfer of all shares of its consolidated energy-related subsidiary NEC Energy Solutions to LG Energy Solution.
The stock transfer is scheduled to take place following completion of required regulatory clearances.
In June 2020, NEC decided to suspend taking new orders for NEC Energy Solutions, which provided power storage systems for electric power companies and businesses, and to continue only the execution and maintenance of contracted projects.
BEST reported at the time how NEC Corp’s Steve Fludder was replaced as chief executive officer at NEC Energy Solutions by Mark Lymbery as the company found it hard to find a buyer during the COVID-19 pandemic.
Since last year, NEC has continued exploring the possibility of selling NEC Energy Solutions, while proceeding with the discontinuation of operations for the subsidiary.
Good news for LG
The move is the first good news for LG Energy Solution in a year that has seen a number of electric vehicle and ESS recalls amid concerns their batteries could ignite.
The latest concern involved Vistra’s flagship 300MW/1.2GWh Moss Landing Energy Storage, which is made up of more than 4,500 stacked battery racks or cabinets, each containing 22 individual battery modules manufactured by LG Energy Solutions.
Phase I of the Texas, US, firm’s facility was forced out of service following an “overheating incident” that affected a number of battery modules around 8pm on 4 September.
Earlier this month, a billion dollar recall of GM’s electric vehicles was made after a torn anode tab and a folded separator were found on cells. LG packs the cells into the modules, then into a battery pack battery at LG Energy Solution Michigan facility in Holland, Michigan, US.
In August, LG Energy Solution extended its scheme to replace lithium-ion batteries used in its home energy storage systems (ESS) to include all geographical markets.
ESSs manufactured between April 2017 and September 2018 are being recalled due to overheating concerns.