Core Viewpoint - SK On has announced its latest strategy in the lithium iron phosphate (LFP) battery sector, aiming to penetrate the North American energy storage market, following similar moves by LG Energy Solution and Samsung SDI [1][2][9]. Group 1: SK On's Collaboration and Market Strategy - SK On has signed a memorandum of understanding (MoU) with Korean battery material manufacturer L&F for the supply of LFP cathode materials in the North American market [4][5]. - The collaboration is expected to help SK On meet the growing demand for LFP batteries in the U.S. and quickly enter the energy storage market, which is experiencing significant growth [6]. - As of May 2025, the cumulative installed capacity of large battery storage in the U.S. reached 31.88 GW/89.31 GWh, with California, Arizona, Texas, and New Mexico being the primary growth regions [6]. Group 2: Competitive Landscape of Korean Battery Manufacturers - The three major Korean battery manufacturers—LG Energy Solution, Samsung SDI, and SK On—are all shifting their focus towards LFP batteries due to their cost and safety advantages [11]. - From January to May 2024, the market share of these three companies in the global (excluding China) power battery market dropped from 45.2% to 39.2%, while Chinese companies like CATL and BYD have increased their market share [11]. - LG Energy Solution has established eight bases in North America with a planned total capacity exceeding 350 GWh, including a recently launched LFP battery factory in Michigan [12][13]. Group 3: L&F's Role and Technological Advancements - L&F is a leading supplier of cathode materials and is currently ramping up production of LFP materials, with plans to achieve a production capacity of 60,000 tons [7][8]. - L&F has developed LFP cathode materials with a pressing density of 2.7 g/cm³, which is expected to enter mass production by the end of 2026 [8]. Group 4: Impact on the Chinese Lithium Battery Supply Chain - Korean companies are increasingly relying on Chinese suppliers for LFP materials, as China dominates the lithium battery supply chain [16][17]. - LG Energy Solution is collaborating with Chinese companies to ensure stable supply chains for LFP materials, while Samsung SDI is expanding its procurement of production equipment from Chinese firms [18][19]. - The collaboration with Chinese companies is expected to enhance the market share of Chinese firms in the global lithium battery market [19].

Core Viewpoint - The automotive industry is shifting from nickel-cobalt-manganese (NMC) batteries to cost-effective lithium iron phosphate (LFP) batteries to reduce costs and appeal to a broader consumer base [2][3]. Group 1: Industry Trends - Major automakers, including General Motors (GM), are actively adopting alternative battery chemistries to lower electric vehicle costs [2]. - GM's key battery suppliers, LG Energy Solution and Samsung SDI, plan to establish LFP battery production in the U.S., potentially becoming the first LFP battery factories in the country [2][3]. - The production timeline for these factories may precede Ford's collaboration with CATL in Michigan, which has faced delays [2]. Group 2: Company Developments - Samsung SDI and GM's joint venture in Indiana is set to produce prismatic battery cells by 2027, with facilities being repurposed for LFP battery production [3]. - LG Energy Solution is also considering converting some of its existing facilities in Ohio and Tennessee to manufacture LFP batteries [3]. - GM has announced that the next-generation Chevrolet Bolt and future versions of the Chevrolet Silverado will feature LFP battery packs, although it has not confirmed the adoption of LFP for other models [3][4]. Group 3: Cost Implications - Transitioning to LFP batteries is expected to reduce the cost of the Silverado electric vehicle by up to $6,000 compared to NMC battery packs [4]. - Current electric vehicles in the U.S. using LFP batteries include entry-level Tesla Model 3 and Model Y, Ford Mustang Mach-E, and Rivian R1T and R1S [4]. Group 4: Future Innovations - GM is also exploring a new battery chemistry called lithium manganese rich (LMR), which reduces the use of expensive nickel and cobalt while increasing manganese content [5]. - The LMR battery is projected to provide over 400 miles (approximately 643.74 kilometers) of range for GM's electric trucks and full-size SUVs, with costs comparable to LFP batteries [5].