OCI Energy Forms Solar Partnership with LG, CPS Energy in Texas

SEOUL, South Korea — OCI Energy, a subsidiary of OCI Holdings, has signed a strategic partnership with LG Energy Solution (LGES) and CPS Energy to provide solar energy in the United States. The memorandum of understanding was announced on Tuesday and signed on May 26, 2025, at the OCI Building in Seoul.

The collaboration aims to enhance energy storage system (ESS) infrastructure across North America. Under the terms of the agreement, Vertech, a subsidiary of LGES, will supply batteries made in Michigan starting June 2025. OCI Energy plans to use these batteries to store solar energy and deliver electricity to CPS Energy, which serves 1.28 million households in Texas.

The first project under this partnership is the Alamo City ESS Project in Bexar County, Texas. This project will include a 120-megawatt solar facility and a 480-megawatt-hour ESS over a 140,000-square-meter site. OCI Energy will be responsible for project development, financing, construction, and operations, aiming to supply power to the San Antonio area for 20 years, enough to support about 41,000 households daily.

OCI Holdings stated that this partnership will help minimize geopolitical risks such as tariffs and trade uncertainties by collaborating with LG Energy Solution, which has a production facility in Holland, Michigan.

Furthermore, OCI Holdings plans to invest $265 million to build a solar cell manufacturing plant in San Antonio, Texas, expected to begin operations in early 2026 with an annual capacity of 1 gigawatt, with plans for future expansion.

Electricity demand from AI data centers in the U.S. is anticipated to increase dramatically, from 4 gigawatts in 2024 to 84 gigawatts by 2030, according to the Center for Strategic and International Studies (CSIS). Texas, in particular, has become a hub for AI infrastructure, home to companies including OpenAI, Oracle, and Crusoe Energy.