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businesskorea.co.krSEP 232 min read

SK On Seals LFP Supply Deal With Posco Future M

SK On signed a 1.1 trillion won ($846.15 million) LFP cathode material supply deal with Posco Future M for 2027-2029. The materials will be used in SK On's Georgia plant for ESS batteries, aiming to build a 'non-China' supply chain. Both companies plan to extend cooperation beyond 2029.

Original reporting
businesskorea.co.kr
Published Sep 23, 2026, 1:01 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 1:55 AM UTC. Informational, not investment advice.
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SK On Seals LFP Supply Deal With Posco Future M — source image
Source · businesskorea.co.kr
Decision brief

The 30-second read

Med
01

Why it matters

The 1.1 trillion‑won contract secures material supply for SK On’s Georgia plant, likely supporting revenue growth and stock valuation.

02

Market read

First disclosure of a major LFP supply deal that could influence battery sector dynamics and related equities.

03

What to watch

Potential regulatory or trade policy changes affecting lithium imports from Argentina

Relevance 9/10Novelty 9/10Timing: announced Sep 22

Background

SK On seeks to secure non‑China LFP cathode material for its US ESS battery plant; Posco Future M supplies lithium from Argentine salt lakes.

Market effects

Sector

strengthens non‑China LFP battery supply chain, may boost US ESS demand outlook

Regional

supports South Korean battery exporters and US energy storage market

Global

adds to global shift toward diversified lithium supply

Counterpoint

What could challenge this read

If demand for ESS slows, the large contract could become a cost burden

Key entities

  • company
    SK On

    South Korean battery maker expanding US ESS production

  • company
    Posco Future M

    Posco subsidiary providing LFP cathode material

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