SK On is stepping up its push into the US energy-storage market with a five-year agreement to supply 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) battery cells to U.S. energy-storage company NeoVolta Power.
Under the deal, SK On will supply LFP pouch cells from 2027 through 2031, with the batteries produced at its US manufacturing facility. The agreement makes SK On the primary cell supplier for NeoVolta Power’s LFP-based battery energy storage system (BESS) products.
But the partnership goes beyond the initial cell-supply deal.
The companies have agreed to an additional 9 GWh arrangement under which SK On will supply more LFP cells to NeoVolta Power, while NeoVolta Power will manufacture energy-storage packs that SK On will purchase between 2027 and 2031.
Together, the two agreements bring the total planned collaboration to 18 GWh, giving SK On a larger foothold in the rapidly expanding U.S. BESS market.
The companies formalized the partnership at a signing ceremony on August 27 at SK On’s headquarters in Seoul. The event was attended by Daejin Choi, Head of ESS Business at SK On, and Steve Bond, President of NeoVolta Power, along with representatives from both companies.
The deal marks another step in SK On’s strategy to diversify beyond its traditional focus on high-nickel batteries for electric vehicles. The company is using its U.S. manufacturing base to accelerate its LFP business and target growing demand for stationary energy storage.
“SK On’s battery cell technology and U.S. manufacturing capabilities, combined with NeoVolta Power’s energy storage expertise and manufacturing capabilities, provide a strong foundation for this strategic partnership,” said Steve Bond, President of NeoVolta Power. “We expect this collaboration to accelerate growth for both companies in the BESS market and help address rising demand in the U.S.”
NeoVolta Power is developing domestically produced LFP battery solutions for utility-scale and commercial and industrial applications. The company operates a BESS manufacturing facility in Pendergrass, Georgia, designed for high-volume production, and is majority-owned by NeoVolta Inc.
For SK On, the agreement also offers a way to increase utilization of its U.S. production capacity while building a larger presence in energy storage.
“This partnership strengthens SK On’s position in the US BESS market and brings together SK On’s US-made LFP battery technology with NeoVolta Power’s growing energy-storage manufacturing capabilities,” said Daejin Choi, Head of ESS Business at SK On.
“We view NeoVolta Power as a strategic partner as we expand our presence in the U.S. energy-storage market. By combining our respective capabilities, we will pursue new commercial opportunities and deliver competitive BESS solutions that meet evolving market needs.”
The 18 GWh partnership underscores SK On’s broader effort to turn its U.S. battery manufacturing footprint into a platform for growth beyond electric vehicles, as demand for grid and commercial energy storage continues to build.
