Industry

Korean battery makers\' earnings outlook clouds as ESS demand rises beyond EV sales

The earnings outlook for South Korea’s three major battery makers has become harder to gauge as demand expands beyond electric vehicles, the industry says. Power shortages linked to the build-out of AI data centres are boosting demand for energy storage systems, drawing U.S. production lines toward ESS. While U.S. EV battery shipments fell in June, ESS installations surged. Companies are reallocating capacity and funding to ESS, though challenges remain in scaling lithium iron phosphate output.

Industry

SK On to produce LFP batteries at Georgia plant for 5 years, expects higher utilisation

SK On has secured a long-term customer in the U.S. energy storage market after signing a battery cell supply agreement with U.S. ESS company Neovolta Power. Under the contract, SK On will supply 9 GWh of LFP pouch battery cells over 2027-2031, produced at its Georgia plant. The companies are also considering a separate deal for an additional 9 GWh, potentially lifting total cooperation to 18 GWh.