SK On has signed a three-year agreement with L&F for lithium iron phosphate (LFP) cathode materials for energy storage systems (ESS), valued at approximately 160 billion won, or about $115.8 million. Signed on Sept. 17, the contract covers 2026 through 2028 and allows the companies to consider an extension of up to three years depending on market conditions and supply performance. An earlier disclosure valued the agreement at $118.2 million based on minimum obligated volumes and recent selling prices, indicating a currency or valuation discrepancy. SK On will immediately use L&F’s high-density third-generation LFP materials at dedicated ESS lines in Seosan, South Korea, and Georgia in the United States. It plans to convert 3 gigawatt-hours of Seosan’s 7 GWh capacity to ESS production and begin mass production in the first half of next year, while also converting some Georgia lines. The deal supports SK On’s push to diversify away from China as global demand for non-Chinese battery supply chains grows. L&F, which established its subsidiary L&F Plus and invested 338 billion won in a dedicated Daegu plant, began commercial mass production of LFP cathode materials this year and plans to reach capacity of up to 60,000 tons by the first half of next year. SK On previously secured 284 megawatts in South Korea’s second ESS central contract market auction and signed an LFP battery supply agreement with U.S. ESS company NeoVolta Power in August. L&F has also supplied Samsung SDI and is seeking a larger role in the global non-Chinese LFP market.