SK On teams up with L&F to boost LFP battery business in US

SK On announced it has signed a memorandum of understanding (MoU) with L&F on the supply of LFP cathode materials for the North American market.

SK On is set to accelerate its lithium iron phosphate (LFP) battery business targeting North America’s energy storage system (ESS) market as it moves to establish a reliable supply chain to support its latest venture.

The agreement outlines plans for the two companies to discuss details, such as supply volume and period, with a view toward building a mid- to long-term partnership, according to a media release.

SK On said it is partnering with L&F, a battery materials maker based in South Korea, to actively address rising demand for LFP batteries in the United States. The move is particularly aimed at strengthening the company’s entry into the fast-growing ESS sector.

SK On plans to establish LFP battery production capabilities by repurposing existing production lines, in line with its ongoing localization strategy.

SK On, part of South Korea’s conglomerate SK Group, currently operates two battery plants and is building four more plants with its partners in the US. SK On’s annual production capacity in the country is projected to be more than 180 GWh once they 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.”