Up to 7.2GWh Supplied to Flatiron Over Four Years
Secures Priority Negotiation Rights for 6.2GWh Projects
First Mass Production and Supply of LFP Batteries from SKBA in the U.S.
SK On has secured its first major energy storage system (ESS) order in the United States since its establishment. This project, valued at approximately 2 trillion won, is seen as a signal of the company's full-scale entry into the North American market, leveraging locally produced LFP (lithium iron phosphate) batteries.
On the 27th of last month, the SK On container-type ESS product was displayed at the SK Group Pavilion during the '2025 Climate Industry International Expo' held at BEXCO in Busan. SK On
On September 4, SK On announced that it had signed a contract to supply 1GWh of ESS to Flatiron Energy Development (Flatiron), a renewable energy company headquartered in Colorado. Under this agreement, SK On will provide container-type ESS products equipped with LFP batteries for Flatiron's project in Massachusetts in 2026.
Additionally, SK On has secured 'preferred negotiation rights' for Flatiron's 6.2GWh projects in the United States, including Massachusetts, scheduled through 2030. As a result, the two companies may supply up to 7.2GWh of ESS products over four years starting in 2026, depending on further discussions.
Given that the battery industry and securities analysts estimate revenue per 1GWh of ESS batteries at around 300 billion won, supplying up to 7.2GWh could result in a contract worth approximately 2 trillion won.
SK On plans to begin mass production of LFP batteries dedicated to ESS in the second half of next year. To achieve this, part of the electric vehicle battery production line at its SK Battery America (SKBA) plant in Georgia will be converted into an ESS line. The company aims to rapidly establish a local production system to respond promptly to customer demand.
SK On applies cost-competitive and highly stable LFP pouch batteries to ESS products, which are less constrained by size and weight compared to electric vehicles. SK On's ESS products feature high-voltage modules that utilize space-efficient pouch batteries. Typically, ESS products require rack-level design to ensure a certain voltage. However, SK On offers a customer-tailored system by adopting a module-based design, which is smaller than a rack, allowing for flexible capacity configuration and expansion.
The company has also ensured a high level of safety by applying solutions such as a battery diagnostic system based on electrochemical impedance spectroscopy (EIS) to prevent heat diffusion to adjacent modules. EIS is a technology that diagnoses the state of a battery by sending a small electrical signal and analyzing the battery's internal resistance and response characteristics.
Previously, SK On CEO Lee Seokhee stated at the 'SK Innovation Corporate Value Enhancement Strategy Briefing' held in July that the company would actively enter the rapidly growing U.S. ESS market and expand its business scope. This contract is particularly significant as it marks a major achievement since SK On elevated its ESS business division to a direct report under the CEO in December last year to strengthen its business capabilities.
By producing LFP batteries for ESS, SK On aims to further strengthen its product lineup and business portfolio, effectively responding to the temporary slowdown in electric vehicle demand and accelerating stable growth. The company is also planning to produce LFP batteries domestically to respond to a long-duration battery ESS project scheduled in Korea at the end of this year.
Meanwhile, SK On has completed the development of LFP battery technology for electric vehicles and is in discussions with multiple major automakers regarding supply contracts. Choi Taejin, Head of SK On's ESS Business Division, said, "This contract is significant as SK On has simultaneously expanded its battery chemistry and business portfolio," adding, "We will continue to secure additional customers in the North American ESS market by leveraging advanced battery technology and local production capabilities."
Flatiron is a renewable energy developer specializing in large-scale ESS development and operation, established in 2021. The company oversees the entire ESS business process, from site acquisition to design, construction, and operation, mainly in North America. Flatiron has attracted investment from BlackRock, the world’s largest asset management firm, and Hull Street Energy, one of the leading private equity funds investing in the decarbonization and modernization of the North American power sector.
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