EV battery manufacturer SK On said it was ready to launch mass production of lithium iron phosphate (LFP) batteries from 2026.
CEO and President Lee Seok-hee said: “We have completed the process of developing LFP batteries and mass production could begin as soon as 2026, if we finalise consultations with our customers.”
Go deeper with GlobalData
Lee said he expected global demand to expand significantly in the coming years, particularly in the low and mid-priced battery electric vehicle (BEV) segments due to their lower manufacturing costs. LFP batteries were also considered safer compared with existing lithium ion and nickel cobalt manganese (NCM) batteries widely used today but have lower energy density.
LFP batteries have so far been adopted widely by BEV manufacturers in China and are produced by BYD, CATL and other battery manufacturers but South Korean automakers are increasingly interested in this technology to reduce BEV costs.
Lee said: “China has taken the lead in the LFP battery market with strong price competitiveness. But there could be significant demand in North America and elsewhere in the coming years.”
SK On operates battery eight plants worldwide, including one in Seosan and a number of wholly owned facilities and joint ventures in Europe, the US and China – including JVs with Ford, Hyundai Motor and EVE Energy.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTwo new factories are scheduled to be completed in 2024, in Hungary and China, followed by four more JV plants in North America from 2025.
