SK On has signed a memorandum of understanding (MoU) with South Korea–based battery materials maker L&F to secure lithium iron phosphate (LFP) cathode materials for North America’s energy storage system (ESS) market. Under the agreement, the two companies will discuss supply volumes and delivery timelines, aiming to establish a mid- to long-term partnership.
The move comes as U.S. ESS installations are rising sharply, driven in part by expanding AI data centers that require reliable, scalable energy storage solutions. BloombergNEF projects U.S. ESS capacity will reach 133 gigawatts (GW) by 2030 and 250 GW by 2035, up from 19 GW in 2023. According to the International Energy Agency, LFP batteries accounted for about 80% of global ESS capacity last year, thanks to their cost competitiveness and safety advantages.
As part of its localization strategy, SK On plans to repurpose existing production lines to manufacture LFP batteries in the United States. The company, which operates two battery plants in North America and is building four more with partners, expects its total annual capacity in the region to exceed 180 GWh once all facilities are fully operational.
“This MoU marks a significant milestone in boosting SK On’s LFP battery value chain and advancing our entry into the North American ESS market,” said Youngkee Shin, Head of Procurement at SK On. “We aim to establish a strong foundation for U.S.-made LFP batteries.”
SK On is pursuing battery chemistry diversification, having unveiled its first LFP battery prototype at InterBattery 2023, followed by the ‘Winter Pro Battery’—optimized for low-temperature performance—in 2024, and a long-life LFP battery in 2025. With the new supply agreement, the company is positioning itself to meet growing demand for LFP-based energy storage solutions in North America.
Source: SKinno News
