LG Chem said Monday it would start supplying lithium-ion battery packs this month for Germany-based SMA Solar Technology, currently the world’s biggest solar inverter producer.

The battery packs will be used in an energy storage system called Sunny Boy Smart Energy developed by SMA for household use.

As the world’s first wall-mounted storage system, the inverter and battery pack have been combined for maximum space and energy efficiency, LG Chem said.

The inverter, co-developed after years of research and development by LG Chem and the German firm, was named the best innovative product in the photovoltaic category at the Intersolar Europe 2013, an international award to honor projects that drive the transformation of energy systems.

Powered by LG Chem batteries, Sunny Boy Smart Energy is expected to bolster the market demand for home energy management systems amid rising electricity prices, industry sources said.

“We plan to make the energy storage system sector one of our new growth engines by developing more optimized, safer and more durable batteries for such storage sytems,” said Kwon Young-soo, president of Energy Solution Company at LG Chem.

Leading market researcher Navigant Research predicts the global energy storage system market to grow by an annual 53 percent to reach 58 trillion won ($580 billion) by 2016, up from 16 trillion won this year.

Lithium-ion batteries will be a significant element for this growth as it raises solar power consumption of households by up to 50 percent. It stores electricity generated by the solar generator to be used during peak hours.

SMA Solar Technology AG, headquartered in Niestetal, Germany, generated sales of 1.5 billion euros in 2012 and is the global market leader for solar inverter, a key component of all photovoltaic plants. The Group employs more than 5,000 people worldwide.

By Kim Young-won  (wone0102@heraldcorp.com)