SK On pushes into LFP batteries for early lead in Korea's energy storage market

SK온 CI [사진=SK온]

SEOUL, January 12 (AJP) - South Korean battery maker SK On is moving forward with plans to establish a lithium iron phosphate, or LFP, battery production system for energy storage applications at its Seosan facility, according to industry officials on Monday.

The company could place orders for LFP battery manufacturing equipment as early as the first quarter of this year, the officials said. It is expected to install an energy storage system, or ESS, battery production line in the second half of the year and begin producing LFP pouch cells early next year.

LFP batteries, which are widely viewed as more thermally stable and cost-efficient than nickel-cobalt-manganese, or NCM, batteries commonly used in electric vehicles, have become the preferred chemistry for stationary energy storage systems.

The Seosan complex currently operates two plants: Plant 1 with an annual capacity of 1 gigawatt-hour and Plant 2 with 6 gigawatt-hours.

Plant 2 is expected to be repurposed for ESS battery manufacturing, with SK On likely to convert two of its four existing production lines for LFP battery output.

Once the conversion is completed, SK On would hold South Korea’s largest domestic LFP battery production capacity, estimated at 3 gigawatt-hours. Industry observers view the move as a bid to secure an early foothold in the country’s fast-growing ESS market.

Demand for energy storage systems in the country is accelerating, fueled by a government-led expansion of renewable energy infrastructure and rising private-sector needs, including power-hungry artificial intelligence data centers.

The government has said it plans to build a cumulative 23 gigawatts of long-duration energy storage capacity by 2038.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Shin Jia 기자 fromjia@ajunews.com

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