South Korean battery and trading company SK On plans to accelerate its lithium iron phosphate (LFP) battery business targeting North America’s energy storage system (ESS) market.

The company has signed a memorandum of understanding (MoU) with South Korean battery materials maker L&F to supply LFP cathode materials for the North American market.

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

SK On has been actively developing LFP batteries as part of its battery chemistry diversification strategy.

SK On plans to establish LFP battery production capabilities by repurposing existing production lines, in line with its ongoing localization strategy. The company currently operates two battery plants, and is building four more, with its partners in the US. Its annual production capacity in the country is projected to be more than 180 GWh once the plants 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 US-made LFP batteries.”

Source: SK On