South Korea’s battery industry is reshaping strategy as the U.S. and EU slow electric vehicle (EV) expansion. Major automaker Ford canceled several EV projects and voided a 9.6 trillion won supply deal with LG Energy Solution, while SK On ended joint operations with Ford in certain plants. In response, Korean firms are pivoting to energy storage system (ESS) markets by ramping up production of lithium iron phosphate (LFP) batteries, which are seeing rising demand from AI data centers. LG Energy Solution will add ESS LFP lines at domestic and overseas plants, and SK On is converting and readying lines in South Korea and the U.S. to begin mass production by 2026–2027. The move aims to preserve profitability and remain agile amid fluctuating EV battery orders.
