■ Approximately KRW 160 billion worth of LFP cathode material to be supplied over three years, from 2026 to 2028
■ A stable supply chain for LFP cathode material, a core component, secured in line with rising global ESS demand
■ Materials to be used on ESS-dedicated LFP cell production lines at the Seosan plant in Korea and the Georgia plant in the U.S.
SK On is strengthening its position in the energy storage system (ESS) market by building a Korea-based supply chain for lithium iron phosphate (LFP) cathode material, a core component of LFP batteries.
SK On announced that it signed an LFP cathode supply agreement with L&F Co., Ltd. on September 17 at SK On’s Gwanhun Campus in Jongno-gu, Seoul. Kim Sung-tan, Head of Raw Materials Procurement Office of SK On and Lee Byung-hee, Chief Operating Officer of L&F Co., Ltd., attended the signing ceremony.
Under the agreement, SK On will procure approximately KRW 160 billion worth of cathode material from L&F between 2026 and 2028 for the production of LFP batteries for ESS applications.
Building on this mid- to long-term partnership, the two companies may also discuss extending the agreement for up to three additional years beyond 2028, taking into account market conditions, supply performance and customer demand.
SK On plans to use the cathode material secured through the agreement on its ESS LFP battery cell production lines, including those at its Seosan plant in Korea and its plant in Georgia, U.S.
The company has been steadily building its track record in the ESS business. In February this year, SK On won 284MW — more than half of the total 565MW, or roughly 50.3% — in the second auction of Korea’s centralized ESS contract market. In August, it signed an LFP battery cell supply agreement with U.S. ESS company NeoVolta Power, further broadening the scope of its ESS business.
SK On is also moving quickly to reorganize its production lines in line with growing orders. At its Seosan plant in Chungcheongnam-do, 3GWh of the total 7GWh capacity is being converted into production lines for ESS LFP batteries, with deliveries scheduled to begin in the first half of next year. A portion of the lines at the Georgia plant in the U.S. will likewise be dedicated to ESS LFP batteries.
L&F, for its part, completed construction of a dedicated LFP cathode plant in the national industrial complex in Dalseong-gun, Daegu, in May this year. Following production stabilization and quality verification, the company shipped its first pilot products from the line in late July — the first mass-production line for LFP cathode material in Korea.
The cathode material L&F will supply to SK On is a third-generation, high-density LFP cathode that delivers higher energy density than conventional LFP cathode materials.
Kim Sung-tan, Head of Raw Materials Procurement Office of SK On, said, “Through this mid- to long-term supply agreement, we have secured high-quality, Korean-made LFP cathode material ahead of the curve. This contract will further strengthen SK On’s competitiveness in LFP battery materials.”
[Photo] Kim Sung-tan, Head of Raw Materials Procurement Office of SK On (left) and Lee Byung-hee, Chief Operating Officer of L&F Co., Ltd., pose for a photo after signing the LFP cathode supply agreement at SK On’s Gwanhun Campus in Jongno-gu, Seoul, on September 17.
