South Korea’s SK ie technology Co. (SKIET) announced on Thursday a significant agreement to supply battery separator films for 300,000 electric vehicles (EVs) in North America. The company has initiated deliveries this month and intends to continue supplying the separator films through the next year. The contract is estimated to be valued at approximately 110 billion won ($75.7 million).
Under the new deal, SKIET will provide the base separator films, which will then undergo a coating process by LG Chem Ltd. Before reaching the end-users, the coated separators will be delivered to LG Energy Solution Ltd.’s North American manufacturing facilities.
This supply agreement supports LG Energy Solution’s plans to commence full-scale battery production in North America in the second half of 2025. Securing these battery components in advance is part of the company’s strategy to ensure a steady supply chain as demand for EVs continues to rise. Although the deal involves a lower average selling price for SKIET, it is expected to enhance the company’s utilization rates and overall operational efficiency.
A SKIET representative mentioned that the company’s strong product quality and competitive pricing, influenced by U.S. tariffs on Chinese-made goods, were pivotal in winning the contract. Currently, Chinese firms dominate the global separator market, holding an 88.8 percent share as of the fourth quarter of last year. However, ongoing trade tensions between the U.S. and China are anticipated to shift more market share towards producers outside of China.
In addition to this contract, SKIET signed another long-term agreement in February worth 291.4 billion won to supply separators for prismatic lithium iron phosphate (LFP) batteries to a global client. This marks the first collaboration between SK and LG since a high-profile legal dispute over battery technology in 2021. Industry analysts believe that the renewed cooperation among domestic battery manufacturers is driven by concerns over the impact of U.S. tariffs introduced during the Trump administration.
