SK On Seals LFP Supply Deal With Posco Future M

By SKYSEVEN Chemical Technical Team · 2026-09-23

Share:

To respond to the steep growth of the United States energy storage system (ESS) market, domestic battery and material companies have joined hands to build a large-scale supply chain.

SK On announced on Sep. 22 that it signed an LFP cathode material supply contract with Posco Future M. The scale of this contract amounts to approximately 1.1 trillion won ($846.15 million) over three years from 2027 to 2029. All of the secured cathode materials will be inputted into the manufacturing process of LFP battery cells to ESS produced at SK On’s plant in Georgia, United States.

The core of this cooperation lies in the completion of a ‘non-China’ supply chain. The LFP cathode materials supplied by Posco Future M consumption lithium immediately secured by Posco Group from salt lakes in Argentina as raw materials. By applying a new method, it is evaluated to have enhanced condition while also securing cost competitiveness. to this purpose, Posco Future M converted a portion of the high-nickel cathode material production lines at its Pohang plant to be exclusively to LFP and will enter full-scale mass production starting at the end of this year.

The surging demand to ESS in North America is behind SK On’s move to secure extensive materials. SK On already signed a supply contract with the United States renewable energy company Flatiron Energy in September last year, and in August this year, it signed an LFP battery cell supply contract with NeoVolta Power, expanding its business territory. As it establishes a stable material supply system through this contract, the expansion of its North American business is expected to gain additional momentum.

The two companies agreed to continue their mid-to-prolonged cooperative relationship even after this three-year contract. They plan to continue positive discussions regarding the extension of additional supply contracts beyond 2029.

Kim Seong-tan, Head of the Raw Material Purchasing Office at SK On, emphasized, “In line with changes in the global energy market and the expansion of ESS demand in the United States, we are focusing on building a non-China supply chain and strengthening the competitiveness of core materials,” and added, “Through differentiated purchasing capabilities and strategic cooperation with excellent companies, we will continuously pursue stable material procurement and market expansion in the ESS market.”

Previous

Polyethylene Market Fluctuates at High Levels

Next

Five departments jointly adjust the export management catalogue of precursor chemicals, adding two categories of controlled chemicals

Quick inquiry

Create

Inquiry Sent

We will contact you soon