Seoul: SK On Co., the battery arm of South Korea's SK Group, announced that it has signed a memorandum of understanding (MOU) with L and F Co. to supply cathode materials for lithium iron phosphate (LFP) batteries, specifically targeting the energy storage system (ESS) market in North America.
According to Yonhap News Agency, under the agreement, SK On and L and F will discuss details such as supply volume and period, with the aim of establishing a mid- to long-term partnership. This collaboration seeks to address the increasing demand for LFP batteries in the United States and bolster SK On's efforts in the rapidly expanding ESS sector.
The U.S. has seen a surge in ESS installations, partly due to the growth of AI-powered data centers that demand reliable and scalable energy storage solutions. LFP batteries are becoming more popular for ESS applications because of their cost efficiency and robust safety features.
SK On has been broadening its LFP battery development as part of its 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," stated Shin Young-kee, head of procurement at SK On. "We want to establish a strong foundation for U.S.-made LFP batteries."