Seoul–September 2025 — South Korean battery maker SK On has entered into a milestone agreement with U.S. energy firm Flatiron Energy Development to deliver up to 7.2 gigawatt-hours (GWh) of lithium iron phosphate (LFP) batteries for utility-scale energy storage systems between 2026 and 2030.
Strategic Pivot to Energy Storage Market
This marks SK On’s first dedicated entry into the energy storage battery market. The move aims to diversify beyond its core business of supplying EV batteries to automakers like Hyundai, Kia, and Ford.
To meet demand, SK On will convert parts of its U.S. electric vehicle battery production lines in Georgia for LFP battery output and launch mass production of ESS-dedicated cells in the second half of 2026. Additionally, the company plans to establish home-based LFP production facilities in South Korea.
Containerized, Scalable ESS Products
Initial deliveries will feature 1 GWh worth of containerized LFP battery systems, slated for deployment in Massachusetts and other U.S. project sites starting in late 2026.SK On has secured the right of first refusal for up to 6.2 GWh of additional Flatiron projects across the U.S. through this agreement.
SK On’s modular LFP ESS units include high-voltage pouch cells and scalable design architecture, enabling flexible deployment while maintaining critical safety features such as heat-propagation control and advanced diagnostics.
Industry & Market Implications
SK On’s expansion into LFP-based energy storage reflects a broader industry shift: battery manufacturers are increasingly pivoting toward grid-scale storage markets to hedge against uncertain EV demand. LG Energy Solution, for instance, has also ramped up ESS-oriented production in response to declining incentives and trade tariffs in the U.S. market
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