SK On provides batteries to companies such as Hyundai Motor, Kia, and Ford Motor.
The agreement, covering 2026 to 2030, will see SK On supply up to 7.2GWh of ESS batteries. Financial details of the contract remain undisclosed. SK On, which already supplies batteries to companies like Hyundai Motor, Kia, and Ford Motor, plans to begin mass production of ESS-dedicated LFP batteries in the second half of 2026. To support this, the company will adapt some of its EV battery production lines in Georgia for ESS battery manufacturing.
SK On stated: “The LFP battery production for energy storage systems expects to further strengthen our product lineup and business portfolio and to effectively respond to the temporary slowdown in electric vehicle demand, and accelerate stable growth.” The company also plans to establish LFP production facilities in South Korea to meet growing demand.
This move aligns with a broader trend among EV battery manufacturers diversifying into the ESS market to address fluctuations in EV demand. By expanding into energy storage, SK On aims to enhance its business resilience and support the global transition to sustainable energy solutions.
In related energy developments, South Korea’s nuclear power sector reported strong performance in the first half of 2025, with an 8.7% year-on-year increase in output, surpassing the official target of 2.9% annual growth. Korea Electric Power Corp attributed this to reduced maintenance outages, the commissioning of the 1.4GW Shin Hanul #2 plant, and the full-capacity operation of existing reactors. This has led to lower generation costs and reduced reliance on coal, contributing to the country’s energy efficiency efforts.
SK On’s strategic expansion into the ESS market and South Korea’s advancements in nuclear energy reflect ongoing efforts to diversify and strengthen sustainable energy systems globally.
