SK On targets US storage deals as data center demand rises

South Korea’s SK On, a battery maker, is in talks with multiple North American customers to supply more than 10 gigawatt-hours of energy storage system batteries, industry sources said.

The discussions involve US data center operators and energy companies, and SK On has invited prospective clients to its Georgia plant for meetings and production line tours, the sources said.

The push comes as US demand for energy storage systems rises alongside AI data center buildouts, while EV battery demand has softened, prompting SK On to shift more output toward energy storage.

SK On plans to secure about 20 gigawatt-hours of ESS capacity by converting part of its US EV battery lines, and it has three US plants operating or under construction with about 102 gigawatt-hours of combined capacity.

🔗 Source: The Korea Herald

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SK On turns to ESS after steep EV battery losses

SK On’s shift reflects financial strain in its electric vehicle battery unit.
It posted a full-year operating loss of 931.9 billion won. SK On also booked 4.2 trillion won in fourth-quarter impairments tied to the battery business. The charge included asset write-downs during the restructuring of the BlueOval SK joint venture (a battery manufacturing partnership between SK On and Ford) in the United States 1.
The company is moving into energy storage system (ESS) batteries, similar to steps taken by LG Energy Solution.
LG Energy Solution leaned on rising ESS demand to cushion slower EV sales. It recorded a 10.5% operating profit margin in Q3 2025 2.

AI power needs pull battery makers into grid support

AI growth is tightening power infrastructure. Data centers can be built in under two years, while new transmission lines often take 15 to 30 years to permit and construct 3.
Grid-scale batteries can be installed and connected in months, which can speed up bringing new data centers online 4.
Battery suppliers such as SK On now support AI data center expansion in North America, alongside their work with automakers.
On-site storage lets operators run facilities as “flexible loads” by charging when power is plentiful, then discharging when the grid is strained. That can steady the grid and reduce the need for expensive upgrades 4.