South Korea’s SK On has reached an agreement with U.S.-based Flatiron Energy Development to provide lithium iron phosphate (LFP) batteries for energy storage systems.

The deal covers up to 7.2 gigawatt hours (GWh) of battery supply between 2026 and 2030, making it SK On’s first order of LFP batteries for storage use rather than electric vehicles.

To fulfill the contract, the company plans to start large-scale production of storage batteries in the second half of 2026. It also intends to repurpose some of its electric vehicle battery production lines in Georgia for storage purposes and set up new LFP production in South Korea.

SK On said this move will strengthen its product mix, cushion the impact of weaker EV demand, and support steady business growth.

Battery makers worldwide are turning to energy storage as EV markets face headwinds. In July, LG Energy Solution also highlighted plans to expand its storage business, citing tariffs and the looming end of U.S. EV subsidies as risks to car battery sales.

While SK On continues to supply automakers such as Hyundai, Kia, and Ford, the deal with Flatiron highlights its strategy to build a stronger presence in the renewable energy storage market.