Seoul: SK On Co., a prominent South Korean battery manufacturer, has announced a significant contract with a U.S. company to provide its cutting-edge energy storage system (ESS), totaling up to 7.2 gigawatt-hours (GWh). This agreement marks a strategic expansion for SK On in the burgeoning U.S. battery energy storage system market.
According to Yonhap News Agency, the agreement entails SK On delivering containerized ESS units equipped with 1 GWh of lithium iron phosphate (LFP) batteries to Flatiron Energy Development, beginning in the latter half of 2026. Furthermore, SK On has secured the first offer rights for Flatiron's project, projected to encompass 6.2 GWh and continue until 2030.
While specific financial details were not disclosed, market analysts estimate the contract's value at approximately 2 trillion won (US$1.43 billion). SK On emphasized that this deal represents its strategic move into the U.S. BESS market and its commitment to expanding its LFP battery sector, aiming for a diversified and sustainable growth trajectory.
Flatiron Energy Development, based in Colorado, specializes in utility-scale energy storage solutions. SK On also revealed plans to commence large-scale production of LFP batteries starting in the latter half of the next year. Jonathan Poor, the head of Flatiron, highlighted the importance of partnering with a global leader in battery production, citing the need for robust engineering and integration capabilities along with domestic resources.