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thelec.netSEP 232 min read

SK On to Buy 1.1 Trillion Won of LFP Cathode Materials From POSCO Future M < Battery < 기사본문

SK On agreed to buy 1.1 trillion won of LFP cathode materials from POSCO Future M for 2027-2029. The materials will be used in ESS batteries at SK On's U.S. plant. POSCO Future M will source lithium from Argentina. SK On also secured a 160 billion won deal with L&F for 2026-2028. These deals aim to strengthen SK On's LFP battery supply chain in North America.

Original reporting
thelec.net
Published Sep 23, 2026, 1:47 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 2:26 PM UTC. Informational, not investment advice.
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SK On to Buy 1.1 Trillion Won of LFP Cathode Materials From POSCO Future M < Battery < 기사본문 — source image
Source · thelec.net
Decision brief

The 30-second read

Med
01

Why it matters

The 1.1 trillion‑won contract with POSCO Future M, plus a 160 billion‑won deal with L&F, represent a multi‑year commitment that could improve SK On's cost structure and delivery reliability for U.S. customers.

02

Market read

The contracts lock in a sizable supply of LFP cathode material, reinforcing SK On's position in the growing U.S. ESS market and signaling broader industry movement toward non‑Chinese supply chains.

03

What to watch

Potential volatility in lithium prices from Argentine salt‑lake sourcing.

Relevance 8/10Novelty 8/10Timing: announced Sep 22

Background

SK On is expanding its LFP battery production for energy storage systems and seeks to diversify its raw‑material supply away from China.

Market effects

Sector

Secures LFP cathode supply, supporting growth of ESS and EV battery sectors.

Regional

Strengthens SK On's U.S. ESS production capacity in Georgia.

Global

Adds to the shift toward China‑free LFP supply chains worldwide.

Counterpoint

What could challenge this read

If global demand for LFP batteries softens, the large contract could become a cost burden.

Key entities

  • company
    SK On

    South Korean battery maker expanding LFP production.

  • company
    POSCO Future M

    POSCO subsidiary supplying LFP cathode material.

  • company
    L&F

    Supplier of LFP cathode material to SK On.

  • company
    NeoVolta Power

    U.S. partner for LFP battery cell supply.

  • company
    Flatiron Energy Development

    U.S. renewable energy firm with prior ESS supply agreement.

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