 |
Photo courtesy of SK On |
[Alpha Biz= Kim Jisun] Domestic LFP production and enhanced safety measures credited for major victory in second central procurement round
SK On staged a dramatic comeback in South Korea’s second centralized Energy Storage System (ESS) procurement market, securing more than half of the total awarded capacity—defying industry expectations.
According to industry sources on Feb. 12, the Ministry of Climate, Energy and Environment announced that SK On won 284 megawatts (MW), or 50.3%, of the total 565MW capacity up for bid. Seven project sites were selected—including six in South Jeolla Province and one in Jeju Island—with SK On supplying batteries to three of them.
The outcome marks a sharp reversal from last year’s first bidding round, in which SK On failed to win any contracts. By contrast, Samsung SDI, which secured 76% in the first round, captured 35.7% this time, maintaining a combined majority share across both rounds. LG Energy Solution won 14% in the second round after taking 24% in the first.
Industry analysts attribute SK On’s success to strong performance in key evaluation criteria, including industrial and economic contribution as well as fire and facility safety.
Ahead of the second bidding round, SK On announced plans to convert part of its Seosan Plant 2 to establish a 3-gigawatt-hour (GWh) production line for ESS-dedicated lithium iron phosphate (LFP) batteries in the second half of this year. Following its stronger-than-expected results, the company is now reportedly reviewing plans to expand capacity to as much as 6GWh—potentially the largest domestic ESS LFP production scale in Korea.
SK On also plans to source cathode materials, electrolytes, and separators for its ESS LFP batteries from domestic suppliers, aiming to strengthen Korea’s LFP ecosystem. The move is expected to enhance utilization rates across secondary battery materials and equipment companies while generating direct and indirect employment effects.
Safety competitiveness also appears to have played a key role, particularly after heightened scrutiny following a fire at the National Information Resources Service last September.
To enhance safety, SK On has strengthened not only post-incident response measures but also preventive systems. Notably, it is the only company among the three major bidders to equip its ESS LFP batteries with a battery diagnostic system based on Electrochemical Impedance Spectroscopy (EIS), capable of detecting risk signals up to 30 minutes before a potential fire.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
