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SK On Targets 10 GWh US Battery Orders This Year
16 Mar
Summary
- SK On aims to secure over 10 GWh in US orders this year.
- Company will reallocate 20% of its global production to ESS cells.
- Demand is driven by AI data centers and renewable energy growth.
SK On is targeting more than 10 gigawatt-hours (GWh) of energy storage system (ESS) orders in the United States by the end of this year. To achieve this, the company will redirect about 20% of its 100 GWh global production capacity towards ESS cells. This strategic pivot aims to capitalize on the surging demand from AI data centers and the rapid expansion of renewable energy projects across the US.
This move into the ESS market comes as SK On, a subsidiary of SK Innovation, seeks to diversify its revenue streams. The company is accelerating production of lithium-iron-phosphate (LFP) cells, which are commonly used in ESS. This effort is part of a broader industry trend, with competitors LG Energy Solution and Samsung SDI also increasing their ESS cell output.
SK On's push into energy storage is also influenced by the slowing electric vehicle market and increasing competition. The company is leveraging its expertise to develop advanced safety features, such as electrochemical impedance spectroscopy, to prevent thermal events in storage facilities. This technology has already helped SK On secure significant contracts, demonstrating its commitment to becoming a major player in the ESS sector.
