[InterBattery] SK On Lee Seok-hee "LFP Development Completed... Mass Production in 2026"

Meeting with the Press at COEX on the 6th

Lee Seok-hee, President of SK On, is answering questions from the press before the opening ceremony of InterBattery at COEX, Gangnam-gu, Seoul, on the 6th.

Lee Seok-hee, President of SK On, announced that the development of LFP (Lithium Iron Phosphate) batteries has been completed and plans to mass-produce them by 2026.

On the 6th, ahead of the opening ceremony of 'InterBattery 2024' held at COEX in Gangnam-gu, Seoul, Lee Seok-hee met with reporters and said, "Internally, the development of Lithium Iron Phosphate (LFP) batteries has been completed," adding, "Once detailed discussions with customers are finalized, mass production could begin around 2026."

He also stated that "LFP batteries are targeted at mid-to-low priced vehicles, so the market is expected to expand to some extent."

The LFP battery market has been regarded as the exclusive domain of Chinese companies such as CATL and BYD. LFP batteries are characterized by lower energy density but are inexpensive. However, the trend has recently changed. As electric vehicles become more popular, the demand for affordable LFP batteries is rapidly increasing. Accordingly, domestic battery cell companies are sequentially announcing development and mass production plans.

Lee said, "China started with LFP batteries first and has been producing a lot by leveraging price competitiveness, but considering markets like North America, I think Korean battery companies can compete sufficiently in the LFP battery sector," explaining, "This is because the market is now becoming more segmented."

Regarding the construction status of local factories in the U.S., including the battery joint venture between SK On and Ford, 'BlueOvalSK,' he said, "I visited in January and saw the progress. The construction of both the Kentucky and Tennessee plants is proceeding as planned, and mass production will begin," adding, "The construction of the Kentucky 2 plant is proceeding as scheduled, and the plant operation will start flexibly depending on market conditions." Earlier, Ford announced during its Q3 conference call last year that the start of operations for BlueOvalSK's Kentucky 2 plant, originally scheduled for 2026, would be delayed. However, the Kentucky 1 and Tennessee plants are planned to begin operations in 2025 as scheduled.

On the turnaround (profitability), he emphasized, "This year, all members are working hard with the goal of turning a profit, especially focusing on securing profitability," adding, "We will enhance profitability this year through internal innovation to enable timely production and continuous cost reduction."

Regarding new order plans, he said, "It seems too early to mention the specific names of customers currently in negotiations," but added, "We are conducting many discussions and expect to share good news soon. Please look forward to it."

This content was produced with the assistance of AI translation services.