Seoul: SK On Co., a prominent South Korean battery maker, announced on Thursday that it has secured a significant deal with a U.S. company to supply an advanced energy storage system (ESS) with a total capacity of up to 7.2 gigawatt-hours (GWh).

According to Yonhap News Agency, SK On will deliver containerized ESS units equipped with 1 GWh of lithium iron phosphate (LFP) batteries to Flatiron Energy Development beginning in the second half of 2026. Additionally, SK On has obtained the first offer rights for Flatiron's project, estimated at 6.2 GWh, which will extend through 2030. While specific contract details were not disclosed, market analysts estimate the deal to be valued at approximately 2 trillion won (US$1.43 billion).

The company emphasized the significance of this agreement, highlighting SK On's strategic expansion into the battery energy storage system (BESS) market in the United States. This move aligns with its growth in the LFP battery sector and underscores its commitment to portfolio diversification and sustainable growth. Flatiron Energy Development, based in Colorado, specializes in utility-scale energy storage.

Furthermore, SK On announced plans to commence mass production of LFP batteries at SK Battery America, its wholly owned subsidiary in Georgia, in the latter half of the upcoming year. The company initially entered the U.S. market in 2022, and this latest agreement represents its first large-scale ESS project.

Jonathan Poor, the head of Flatiron, highlighted the strategic importance of partnering with a global leader in battery production, emphasizing the value of strong engineering and integration capabilities combined with domestic resources.