Battery manufacturer SK On will mass-produce lithium iron phosphate batteries as early as 2026

According to Reuters, South Korean battery maker SK On plans to start mass production of lithium iron phosphate (LFP) batteries as early as 2026 to supply multiple automakers, Chief Operating Officer Choi Young-chan said.

Image source: SK

Choi Young-chan said that SK On is in related negotiations with some traditional car manufacturers who want to purchase LFP batteries, but it did not disclose which car manufacturers they are. It only said that the company plans to start mass production of LFP batteries after the negotiations are completed. "We developed it and we are ready to produce it. We are having some conversations with OEMs. If the conversations are successful, we could produce the product in 2026 or 2027. We are very flexible."

According to Reuters, this is the first time that SK On has disclosed its LFP battery strategy and mass production time plan. Korean competitors such as LG Energy Solution and Samsung SDI have also previously announced that they will mass produce LFP products in 2026. Automakers are adopting different types of battery chemistries, such as LFP, to reduce costs, produce affordable electric vehicles and avoid supply chain issues with materials such as cobalt.

Regarding the production location of LFP products, Choi Young-chan said that SK On is considering producing LFP batteries in Europe or China. "The biggest challenge is cost. We have to compete with Chinese LFP products, which may not be easy. What we focus on is not the price itself, we focus on energy density, charging time and efficiency, so we need to find the right car manufacturer customers ." Currently, SK On has production bases in the United States, South Korea, Hungary, China and other places.

Choi revealed that the company is not in talks with its U.S. automaker customers about LFP supplies. "The cost of setting up an LFP plant in the United States is too high... As far as LFP is concerned, we are not looking at the U.S. market at all. We are focusing on the European market."

While SK On is promoting the production of LFP batteries, it is also developing prismatic and cylindrical electric vehicle batteries. Chey Jae-won, the company's executive vice chairman, said in a separate statement that SK On has made great progress in developing cylindrical batteries used by Tesla and other companies.