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fntimes.comSEP 233 min read

SK On Builds Non-Chinese LFP Supply Chain With POSCO Future M, L&F

SK On has partnered with POSCO Future M and L&F to secure KRW 1.26 trillion in LFP cathode materials for ESS batteries, reducing reliance on Chinese suppliers. Deals include KRW 1.1 trillion with POSCO Future M (2027-2029) and KRW 160 billion with L&F (2026-2028). SK On aims to strengthen its ESS market competitiveness with Korean-made materials, winning significant contracts and accelerating production line conversions in South Korea and the U.S.

Original reporting
fntimes.com
Published Sep 23, 2026, 9:06 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 9:25 AM UTC. Informational, not investment advice.
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SK On Builds Non-Chinese LFP Supply Chain With POSCO Future M, L&F — source image
Source · fntimes.com
Decision brief

The 30-second read

Med
01

Why it matters

The contracts secure ~KRW 1.26 trillion of material, enabling production scaling in Georgia and Seosan, and may improve margins versus peers using Chinese inputs.

02

Market read

The deals position SK On as a leading non‑Chinese LFP supplier, influencing ESS market dynamics in the U.S. and Korea.

03

What to watch

Potential regulatory changes in the U.S. IRA eligibility and currency risk on KRW‑denominated deals.

Relevance 8/10Novelty 8/10Timing: announced Sep 23

Background

SK On, the battery unit of South Korea's SK Group, is securing non‑Chinese LFP cathode supplies for its ESS production.

Market effects

Sector

Strengthens Korean battery supply chain and may pressure peers reliant on Chinese cathodes.

Regional

Boosts SK On's competitiveness in the U.S. ESS market and supports domestic Korean manufacturers.

Global

Highlights shift away from Chinese LFP materials, relevant for global EV and storage investors.

Counterpoint

What could challenge this read

The contracts may lock SK On into higher-cost materials if Korean sources cannot meet price expectations.

Key entities

  • company
    SK On

    South Korean battery manufacturer expanding ESS LFP production.

  • company
    POSCO Future M

    Korean cathode material supplier signing a KRW 1.1 trillion contract.

  • company
    L&F

    Korean cathode maker providing KRW 160 billion of LFP material.

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