SK On has secured a large foothold in the US energy-storage market with a battery-cell supply contract estimated by the industry at about 1.5 trillion won.
The Korean battery maker will supply 9 GWh of lithium iron phosphate, or LFP, pouch cells to NeoVolta Power from 2027 through 2031. The cells will be produced at SK On’s manufacturing operations in Georgia. NeoVolta Power, a subsidiary of US energy-technology company NeoVolta, operates an energy-storage manufacturing facility in Pendergrass, Georgia.
The agreement is strategically important because energy storage is becoming a larger second market for battery producers that built capacity primarily around electric vehicles. SK On has set a 20 GWh new-order target for ESS business this year, so the 9 GWh contract covers close to half of that target in a single agreement. Long-term orders can also help improve utilization at US factories.
The relationship may expand further. SK On says the companies are working toward another 9 GWh supply arrangement and a partnership in which NeoVolta Power would assemble battery packs that SK On could receive back for broader ESS business. If that additional contract is completed, the cooperation would reach 18 GWh. Until then, the signed 9 GWh supply deal is the firm commitment.