SK On secures L&F LFP cathode supply for ESS batteries
- SK On will procure approximately KRW 160 billion of LFP cathode material from L&F for deliveries between 2026 and 2028.
- The material is earmarked for ESS-dedicated LFP cell lines at SK On’s Seosan (Korea) and Georgia (U.S.) plants.
- The mid- to long-term agreement can be extended up to an additional three years depending on market conditions and supply performance.
- L&F completed an LFP cathode plant in Dalseong in May and shipped first pilot third-generation, high-density LFP cathode products in late July.
Deal details
SK On signed an LFP cathode supply agreement with L&F on September 17 at its Gwanhun Campus in Seoul. Under the deal, SK On will procure about KRW 160 billion worth of cathode material from L&F for deliveries from 2026 through 2028. The companies may discuss extending the agreement for up to three additional years based on market conditions, supply performance and customer demand.
Intended use
SK On plans to use the supplied cathode material on ESS-dedicated LFP battery cell production lines, including lines at its Seosan plant in Korea and its plant in Georgia, U.S.
Production timing and capacity
SK On is converting part of its Seosan capacity to ESS LFP lines, with 3 GWh of the plant’s 7 GWh being reconfigured and deliveries scheduled to begin in the first half of next year. A portion of lines at the Georgia plant will also be dedicated to ESS LFP batteries.
Material and market context
L&F completed construction of a dedicated LFP cathode plant in Dalseong-gun in May and shipped pilot products from that line in late July; it is billed as Korea’s first mass-production LFP cathode line. The cathode to be supplied is a third-generation, high-density LFP material. SK On has been expanding its ESS footprint, winning 284 MW (about 50.3%) in a Korean centralized ESS auction and signing an LFP cell supply deal with U.S. ESS company NeoVolta Power.
Source: SK Innovation