Technical differences and strategic deployments of lithium iron phosphate (LFP) between China and South Korea

While Korean battery companies rush to secure a foothold in North America, China tightens its export controls on key technologies—intensifying the global technological rivalry over lithium iron phosphate (LFP). On July 15, Korean battery maker SK On signed a memorandum of understanding (MoU) with domestic materials giant L&F, under which L&F will supply LFP cathode material to SK On’s North American operations. On the very same day, China’s Ministry of Commerce and Ministry of Science and Technology jointly revised and released the ‘Catalogue of Technologies Prohibited and Restricted from Export,’ adding one new item to the restricted list: cathode material manufacturing technology for batteries—including three specific control points: (1) LFP synthesis technology for batteries; (2) lithium manganese iron phosphate (LMFP) synthesis technology for batteries; and (3) synthesis technology for phosphate-based cathode raw materials. 1. LFP synthesis technology for batteries, meeting *all* the following conditions: (1) Chemical formula: LiₓFeᵧM_zPO₄, where x, y, z ≥ 0, and M represents one or more elements other than Li and Fe. (2) Powder tap density ≥ 2.58 g/cm³ at 220 MPa; discharge specific capacity ≥ 160 mAh/g at 0.1C; initial Coulombic efficiency ≥ 97%. 2. LMFP synthesis technology for batteries, meeting *all* the following conditions: (1) Chemical formula: LiₓFeᵧMn_zMₐPO₄, where x, y, z, a ≥ 0, and M represents one or more elements other than Li, Fe, and Mn. (2) Powder tap density ≥ 2.38 g/cm³ at 220 MPa; initial Coulombic efficiency ≥ 95% at 0.1C; discharge specific capacity ≥ 155 mAh/g at 0.1C; average voltage ≥ 3.85 V at 0.1C. 3. Synthesis technology for phosphate-based cathode raw materials: (1) Includes manufacturing processes for iron phosphate, iron-manganese phosphate, battery-grade ferrous oxalate, battery-grade lithium dihydrogen phosphate, and battery-grade lithium phosphate. For iron phosphate specifically, both of the following must be satisfied: tapped density > 1.2 g/cm³; magnetic foreign particles < 10 ppb. Within a single day, these two major events vividly illustrate a profound shift in the global power battery landscape. As China and South Korea directly compete head-to-head in the LFP arena, divergences in technical approaches are emerging as decisive variables shaping future market geography. 01 The North American Battlefield: Korean Companies’ Lightning Deployment North America has become the primary theater for LFP technological competition. With explosive growth in energy storage system (ESS) demand driven by AI data centers, U.S. ESS installed capacity is projected to surge from 19 GW in 2023 to 133 GW by 2030—and exceed 250 GW by 2035. Facing this massive opportunity, Korea’s three leading battery giants have moved swiftly: SK On operates two battery plants in the U.S. and has four more under construction, targeting an annual production capacity exceeding 180 GWh. Its LFP technology roadmap is clear: it unveiled its first LFP battery prototype in 2023; launched the Winter Pro battery—enhanced for low-temperature performance—in 2024; and plans to mass-produce long-life LFP batteries in 2025. LG Energy Solution is planning to retrofit its existing factories in Ohio and Tennessee into dedicated LFP battery production bases.

A mega-LFP deal exceeding RMB 7 billion has been secured!

On February 9, a global energy project cooperation MoU was formally signed with Dongseobang Power (East-West Power) of South Korea, committing both parties to jointly develop and invest in energy storage and renewable energy projects worldwide, while also actively exploring innovative business models in the energy storage sector. In December 2025, Samsung SDI’s U.S. subsidiary signed an LFP battery supply agreement with an American client, with a total contract value exceeding KRW 2 trillion (approximately RMB 9.2 billion). Deliveries will commence in 2027 and continue for three years. All batteries under this order will be shipped integrated into Samsung’s SBB (Samsung Battery Box) 2.0—a fully integrated energy storage system solution. In November 2025, market reports indicated that Samsung SDI had reached a cooperation consensus with Tesla, agreeing that Samsung SDI would supply approximately 10 GWh of energy storage system batteries to Tesla annually for at least the next three years. If successfully implemented, the total volume supplied to Tesla over the three-year period would reach 30 GWh, with procurement value potentially exceeding KRW 3 trillion (nearly RMB 15 billion). Against this backdrop, Samsung SDI’s large-scale move on the materials front appears highly rational: its collaboration with L&F helps mitigate regulatory risks associated with U.S. oversight of China-linked supply chains—and simultaneously reduces dependence on Chinese-sourced materials. According to SPIR (Startpoint Research Institute) data, global LFP cathode material shipments reached 3.654 million tonnes in 2025, up 67.2% year-on-year, accounting for 78% of total global lithium-ion battery cathode material shipments. China alone accounted for over 90% of global LFP cathode material shipments. The top ten LFP cathode material suppliers globally were Hunan Yuteng, Shenzhen Dynanor, Wanzhun New Energy, Longpan Technology, Jiangxi Shenghua, Youshan Technology, Rongtong High-Tech, Ande Technology, PKU Pioneer, and Wanhua Chemical—all headquartered in China. Therefore, as one of the few non-Chinese LFP material producers, Korean company L&F is inevitably becoming a primary partner for Korean battery manufacturers. Startpoint Lithium Battery Research previously noted that L&F had already secured another partnership with a leading Korean battery company. In July 2025, SK On announced an MoU with L&F regarding LFP cathode material supply for the North American market. Under the agreement, both sides will negotiate specific details—including volumes and delivery schedules—to establish a medium- to long-term cooperative relationship. Founded in 2000, L&F initially manufactured backlight units (BLUs) for LCDs. In August 2005, it established L&F Materials as a subsidiary to formally enter the lithium-ion secondary battery cathode materials business—and has since maintained partnerships with all three major Korean battery makers. Currently, L&F’s lithium battery material portfolio covers both NMC and LFP chemistries. Its LFP material has already entered pilot-line production, with samples delivered to customers. Reports indicate that L&F initiated overseas investment as early as August last year and is now constructing a production facility with an annual capacity of 60,000 tonnes. Phase I—30,000 tonnes—is scheduled for completion in April this year and is expected to enter mass production in Q3 after customer validation. Additionally, early 2025 reports revealed that L&F’s newly developed LFP cathode material achieved a compaction density of 2.7 g/cm³ and is slated for mass production by the end of 2026.

SK On signs LFP cathode supply contract with L&F

3 days ago

SK On secured a three-year, $115.7 million supply deal with L&F for high-density LFP cathode materials to support its energy storage battery production starting in 2026.

chemweek

2026-09-18

SK On signs LFP cathode supply contract with L&F

SK On signs LFP cathode supply contract with L&F

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