SK On has successfully secured more than half of the orders in the 1 trillion won second energy storage system (ESS) central contract market, outperforming major competitors Samsung and LG.
SK On has achieved a remarkable turnaround by winning 50.3% of the orders in the second energy storage system (ESS) central contract market, amounting to 284 megawatts (MW) out of 565 MW available. This significant success comes after the company had previously secured no orders in the first round of bidding, showcasing a recovery amidst intense competition from industry giants like Samsung SDI, which managed to obtain only 35.7% of the orders in this round, and LG Energy Solution, which saw further declines, capturing only 14% of the total capacity.
The project, spearheaded by the government, is vital for stabilizing electricity supply in regions with high renewable energy production rates through the installation of large-scale energy storage systems. While individual contract amounts may be modest, the government's ambitious plans include the installation of 23 gigawatts (GW) of energy storage systems by 2038 as part of the 11th Basic Plan for Electricity Supply and Demand, making the competition among the 'Big Three'—Samsung SDI, SK On, and LG Energy Solution—intensely critical for their market positions.
Industry analysts are closely examining SK On's successful strategies, particularly focusing on elements such as domestic industrial and economic contributions and safety evaluations that tipped the scales in their favor. The company has been investing in local materials for its production process and is set to establish a lithium iron phosphate (LFP) battery production line capable of producing 3 GWh by the second half of the year, which is instrumental in enhancing their domestic contributions within the energy storage market.
