SK On Co., the battery unit of chip-to-construction conglomerate SK Group, said Wednesday mass production of lithium iron phosphate (LFP) batteries will be possible in 2026 depending on customers’ demands.
“We have internally wrapped up the process of developing LFP batteries and their mass production could begin in 2026 if we finalize consultations with our customers,” SK On Chief Executive and President Lee Seok-hee said on the sidelines of the InterBattery 2024 exhibition in Seoul.
He expected an expanded market demand for LFP batteries, which are used in low and mid-priced electric vehicles (EVs).
An LFP battery is known for its enhanced safety features and low manufacturing costs despite low energy density and relatively short driving range compared to the lithium-ion batteries or nickel cobalt manganese (NCM) batteries adopted by Korean companies.
Korea’s three major battery makers, including LG Energy Solution Ltd. and Samsung SDI Co., currently produce premium lithium-ion batteries, which are com
monly used in EVs but are prone to fires.
The LFP battery market has been dominated by China’s EV maker BYD and EV battery firm CATL but Korean battery firms have been developing LFP batteries to meet growing demand from global carmakers.
“China takes the lead in the LFP battery market with strong price competitiveness. But there seems to be big growth potential for Korean battery firms in North American markets,” the CEO said.
For the whole of 2023, SK On reported an operating loss of 581.8 billion won (US$436 million), narrowing from a loss of 1.07 trillion won a year earlier.
This year, the company aims to make a turnaround in terms of an operating profit by cutting costs, enhancing productivity and winning more deals, he said.
SK On had an order backlog of 400 trillion won as of the end of 2023, up 110 trillion won from a year earlier.
The company operates one domestic plant and seven overseas plants — two in Hungary, two in the United States and three in China.
It is adding one plant in Hungary a
nd one in China both in 2024, and four more plants with its partners in the U.S. after 2025.
Source: Yonhap News Agency