SK On has successfully secured a large-scale ESS (Energy Storage System) project, marking its official entry into the North American ESS market with locally produced lithium iron phosphate (LFP) batteries.
On September 4, SK On officially announced that it has signed a 1 GWh ESS supply agreement with U.S. renewable energy company Flatiron Energy Development based in Colorado. According to the agreement, SK On will supply containerized ESS products equipped with LFP batteries in 2026 for a project being developed by Flatiron in Massachusetts.
Additionally, SK On has obtained the Right of First Offer from Flatiron for projects totaling 6.2G Wh in scale, which are being developed in Massachusetts and other regions of the United States through 2030. Through mutual consultation, SK On will supply up to 7.2 GWh of ESS products over a four-year period starting in 2026.
To meet North American market demand, SK On plans to commence mass production of ESS-dedicated LFP batteries in the second half of 2026. The company will convert part of the electric vehicle battery production lines at its SK battery factory in Georgia, USA, into dedicated ESS production lines, thereby establishing a rapidly responsive localized supply chain system.
Compared to electric vehicle batteries, ESS products face fewer restrictions in terms of size and weight. As a result, SK On has adopted LFP pouch batteries, which offer both cost competitiveness and high stability.
Edited by Cassie Li, lixiangying@mysteel.com
