SK On and NeoVolta Power agree 18 GWh U.S. BESS collaboration
- Five-year agreement supplies 9 GWh of LFP pouch cells from 2027 through 2031.
- A reciprocal arrangement adds 9 GWh of cells plus SK On purchases of NeoVolta-produced packs, taking total volume to 18 GWh.
- Cells will be produced at SK On’s U.S. manufacturing facility; NeoVolta operates a high-volume BESS plant in Pendergrass, Georgia.
- Deal advances SK On’s U.S. LFP BESS push, aiming to raise local utilization and improve profitability.
Deal details
SK On signed a long-term strategic agreement to supply 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch cells to NeoVolta Power, covering deliveries from 2027 through 2031.
Expanded collaboration and volumes
The agreement establishes a broader framework under which SK On will supply an additional 9 GWh of LFP cells and NeoVolta Power will produce energy storage packs to be purchased by SK On from 2027 to 2031, bringing total partnership volume to 18 GWh.
Manufacturing
SK On’s LFP pouch cells will be produced at its U.S. manufacturing facility. NeoVolta Power operates a manufacturing site in Pendergrass, Georgia designed to support high-volume BESS production for utility-scale and commercial applications.
Strategic rationale
The collaboration supports SK On’s push to expand its U.S. BESS presence and broaden its portfolio beyond high-nickel EV batteries into LFP for energy storage, aiming to improve local production utilization and profitability while scaling BESS offerings.
Signing
The companies held a signing ceremony on August 27 at SK On’s headquarters in Seoul attended by senior representatives from both firms.
Source: SK Innovation