SK On announced on the 31st that it signed a battery cell supply contract for energy storage systems (ESS) with U.S. ESS company 'NeoVolta Power' on the 27th at its Gwanhun Campus in Jongno-gu, Seoul.
Under this agreement, SK On will supply a total of 9 gigawatt-hours (GWh) of LFP (lithium iron phosphate) pouch battery cells to NeoVolta Power from 2027 through 2031, spanning five years. The supplied units are expected to be produced at SK On's factory in Georgia, U.S. Industry sources estimate the value of this contract at around 1.5 trillion won.
SK On has also been selected as a key cell supplier for NeoVolta Power's ESS products based on LFP pouch batteries. NeoVolta Power is an ESS manufacturer with production facilities in Pendergrass, Georgia, U.S., and is a subsidiary of the well-known U.S. energy technology company NeoVolta.
The two companies plan to expand their cooperation beyond this contract to cover the broader ESS sector. SK On intends to provide an additional 9 GWh of LFP battery cells for ESS to NeoVolta Power through a separate contract later this year, adopting a strategic partnership model where NeoVolta Power purchases these cells as finished pack products with its own expertise. The total scale of business cooperation between the two companies is expected to expand to 18 GWh.
SK On explained that this order secures it as a long-term supplier of LFP batteries for ESS in North America. It is also expected to help broaden its local customer base in the rapidly growing U.S. ESS market.
Steve Bond, President of NeoVolta Power, stated, "SK On's battery technology capabilities and production capacity in the U.S., combined with NeoVolta Power's ESS manufacturing expertise, form the foundation of this strategic cooperation." He added, "Through this partnership, we expect to effectively respond to increasing demand in the U.S. and accelerate the expansion of both companies' ESS businesses."
Choi Dae-jin, Head of SK On's ESS Business Division, said, "This contract will further strengthen SK On's position in the U.S. ESS market," and added, "Based on battery solutions tailored to local production capabilities and customer demand, we will continue to expand into new customers and business opportunities."
in INDUSTRY
