South Korea’s SK On is set to initiate mass production of lithium iron phosphate (LFP) batteries as early as 2026, eyeing collaborations with major traditional automakers to deliver a more cost-effective battery chemistry. SK On’s Chief Administrative Officer, Choi Young-chan, revealed the company’s plan to supply LFP batteries, a move in line with the strategy adopted by its Chinese counterparts.

SK On is actively engaged in supplying electric vehicle (EV) batteries to major automakers such as Ford, Volkswagen, and Hyundai

While the automaker has not disclosed the names of the OEMs it is in talks with, Choi emphasized that mass production will commence once discussions are finalized.

The automotive industry is witnessing a surge in the adoption of diverse battery chemistries, including LFP, as manufacturers aim to reduce costs and ensure a stable supply chain. This marks the first time SK On has provided details on its LFP battery strategy and outlined a timeline for mass production. Rivals LG Energy Solution and Samsung SDI have also announced their plans to target mass production of LFP products in 2026.

SK On, a battery unit of South Korean energy group SK Innovation, is actively engaged in supplying electric vehicle (EV) batteries to major automakers such as Ford, Volkswagen, and Hyundai. Choi disclosed that the company is exploring the possibility of manufacturing LFP batteries in Europe or China, acknowledging the challenge of competing with Chinese LFPs on cost. The focus, however, remains on energy density, charging time, and efficiency rather than on price alone.

Despite having production sites in the United States, South Korea, Hungary, and China, SK On is not currently in talks with its U.S. automaker customers regarding LFP supply. Choi explained that the high cost of building LFP factories in the United States makes it less feasible, with the company primarily concentrating on the European market.

Chinese battery manufacturers, including CATL and BYD, dominate global LFP production, benefiting from strong demand in their home market. LFP batteries from Chinese manufacturers are approximately 20% cheaper than nickel-based counterparts, providing an economical option for EVs, albeit with slightly reduced range compared to nickel-based alternatives. SK On is simultaneously working on developing prismatic and cylindrical-type EV batteries, making notable progress in the latter used by Tesla and other automakers.

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