SK On LFP supply to North America advances with L&F partnership

SK On

SK On LFP supply to North America advances through a new pact with L&F. The agreement targets LFP cathode materials for the North American ESS market. SK On LFP supply to North America aligns with its localization strategy and plant build-out. The partners will finalize volume and tenor for a medium- to long-term deal.

Partnership scope, localization, and capacity

The alliance prioritizes localized LFP cathode supply for grid and data-center storage. SK On plans to repurpose lines to develop LFP battery production. It already operates two U.S. plants and is building four more. Total capacity is expected to exceed 180 GWh once fully online.

Market impact and midstream implications

Demand for LFP cells in North America is accelerating with AI data centers. Energy storage growth also supports faster LFP adoption and procurement. However, midstream capacity in the U.S. remains underdeveloped. It is unclear if cathode production will be domestic or imported.

The partnership strengthens resilience across a maturing U.S. battery chain. As a result, buyers gain another Tier-1 LFP source for ESS deployments. SK On LFP supply to North America should improve lead times and cost control. Meanwhile, policy incentives could favor deeper localization over imports.

The Metalnomist Commentary

This move tightens ESS supply optionality ahead of large data-center builds. The deciding factor will be U.S. cathode siting and qualification speed. Watch IRA eligibility, precursor sourcing, and long-term offtake structures.