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Korea Zinc Inc., the world鈥檚 largest lead and zinc smelter, announced on Tuesday that its Australian subsidiary, Ark Energy, has selected Hanwha Corp. as the preferred negotiation partner for a major battery energy storage system (BESS) project in Australia, according to the several media reports. This development highlights the growing collaboration between the two companies, which established a strategic partnership in September 2022. The partnership was formalized through a share exchange between Ark Energy and Hanwha Impact Co.'s U.S. subsidiary, HPS Global, reflecting their shared vision for advancing renewable energy initiatives.

The next phase of this partnership involves the creation of a dedicated task force by the end of this month. This task force will focus on detailing the terms of the agreement, with the goal of finalizing and signing a supply contract early next year. Korea Zinc estimates the contract's value to be in the range of several million U.S. dollars, underscoring the scale and importance of the project. Ark Energy will oversee the project鈥檚 development, ensuring it aligns with regional energy needs and sustainability goals. Meanwhile, Hanwha will bring its expertise in designing, procuring, and commissioning the battery storage systems, ensuring the project meets technical and operational excellence standards.

The construction of the BESS is planned to begin in the third quarter of 2025, with commissioning expected to take place in 2026. Once operational, the project will provide up to 275 MW of power capacity and 2,200 MWh of energy storage. This system will serve the New South Wales power market, delivering critical energy storage services for a period of 14 years. Designed to operate for eight hours daily, the BESS will significantly enhance grid reliability, support renewable energy integration, and contribute to the region鈥檚 clean energy transition.

This collaboration represents a critical step forward in Korea Zinc鈥檚 broader strategy to lead the global shift toward sustainable energy solutions. By combining Ark Energy鈥檚 leadership in renewable project development with Hanwha鈥檚 technical expertise in battery energy storage, the partnership is well-positioned to address the growing demand for reliable and efficient energy storage systems. Moreover, the project aligns with Australia鈥檚 commitment to decarbonization and energy resilience, further reinforcing Korea Zinc鈥檚 role as a pioneer in renewable energy infrastructure.

The project鈥檚 successful completion will not only strengthen energy security in New South Wales but also serve as a model for future collaborations between major corporations in the renewable energy sector. With its substantial capacity and long-term operational plan, the BESS project is poised to play a pivotal role in shaping the region鈥檚 sustainable energy future.