LG Chem, a Korean chemical and rechargeable battery maker, has secured a contract from Southern California Edison (SCE), an electric utility, to supply lithium-ion battery packs for a pilot program involving energy storage systems for residential and small commercial applications.

The home energy storage systems, which will be assembled by LG Chem Power for the program, will use lithium-ion battery packs from LG Chem, solar PV inverter and control and communication equipment from LG Electronics and battery charger from LS Industrial Systems.

Field deployment testing of the energy storage systems, which are designed to provide 10kWh of energy at location to reduce peak power usage by up to 4kW will begin during the third quarter of 2011 and will be completed by the end of 2012.

The home energy storage program marks a step towards the growing development of alternative energy storage devices that can be used in demand response applications for both economic and reliability load management to mitigate power shortages and enhance load shifting capabilities.

LG Chem CEO and vice chairman Peter Kim said that the company is very pleased to be partnering with such a visionary and influential utility company as Southern California Edison on this home battery pilot program.

“It is our first business in the utility market and validates the extensive work our team has done in developing lithium-ion battery packs that have application beyond automotive usage,” Kim said.