SEOUL, September 04 (AJP) - Battery maker SK On said Thursday it had secured a major foothold in the North American energy storage market by signing a large supply contract with Colorado-based Flatiron Energy.
The deal covers one gigawatt-hour of containerized storage systems using lithium iron phosphate (LFP) batteries for a project in Massachusetts, beginning next year. SK On also gained “preferred supplier” status for Flatiron’s broader portfolio of U.S. projects, totaling 6.2 gigawatt-hours through 2030.
In all, the partnership could reach 7.2 gigawatt-hours, with an estimated value of up to 2 trillion won, or $1.44 billion.
Flatiron, founded in 2021, develops and operates large-scale energy storage systems across North America, overseeing the process from site acquisition to construction and operation.
To meet demand, SK On plans to begin mass production of storage-specific LFP batteries in the second half of 2026. Part of its SK Battery America plant in Georgia, originally designed for electric vehicle batteries, will be converted to produce the systems.
Executives said the pivot would help the company weather a slowdown in electric vehicle sales by broadening its product portfolio. The global market for stationary energy storage has been expanding rapidly, driven by renewable power generation and grid stabilization needs.
“This contract is highly significant in that SK On has simultaneously expanded both its battery chemistry and business portfolio,” said Choi Dae-jin, head of the company’s ESS division. “Going forward, we will continue to secure additional customers based on our advanced battery technology and local production capabilities.”
Industry analysts estimate that energy storage contracts average about 300 billion won, or $215 million, per gigawatt-hour, making the Flatiron deal one of SK On’s largest outside the electric vehicle sector.
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