SK On signs LFP cathode material supply deal with L&F for US ESS market
Shin Young-kee, left, head of procurement at SK On, and Lee Byung-hee, chief operating officer (COO) at L&F, shake hands after signing a memorandum of understanding (MOU) in Seoul, Thursday. Courtesy of SK On
SK On, the battery arm of Korea's SK Group, said Friday it has signed a memorandum of understanding (MOU) with L&F for the supply of cathode materials for lithium iron phosphate (LFP) batteries, targeting the energy storage system (ESS) market in North America.
Under the agreement, the two companies plan to discuss details, such as supply volume and period, with the goal of building a mid- to long-term partnership, according to SK On.
SK On said the partnership with L&F, a major battery materials maker in Korea, aims to meet rising demand for LFP batteries in the United States and strengthen the company's push into the rapidly growing ESS sector.
ESS installations in the U.S. have been accelerating in recent years, driven in part by the rise of AI-powered data centers that require reliable, scalable energy storage solutions.
LFP batteries are increasingly favored for ESS applications due to their cost efficiency and strong safety characteristics.
SK On has been expanding its LFP battery development as part of a broader strategy to diversify its battery chemistry portfolio.
"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 Shin Young-kee, head of procurement at SK On. "We want to establish a strong foundation for U.S.-made LFP batteries."