2027-31 US NeoVolta and SK On Sign 18GWh Energy Storage Deal

en.Wedoany.com Reported - NeoVolta Power and SK On have signed a five-year strategic supply and manufacturing cooperation agreement. The two parties will collaborate through cell supply and contract manufacturing of energy storage battery packs, supporting a combined business scale of up to 18 GWh.

Under the agreement, SK On will supply NeoVolta Power with 9 GWh of US-made lithium iron phosphate (LFP) battery cells between 2027 and 2031. The two parties have also established a broader cooperation framework: during the same period, SK On will supply an additional 9 GWh of LFP cells, while NeoVolta Power will manufacture energy storage battery packs for SK On to purchase. The initial cell supply agreement and battery pack manufacturing cooperation together correspond to 18 GWh of business activity.

Daejin Choi, head of SK On's energy storage business, stated that this cooperation combines SK On's US-made LFP battery technology with NeoVolta Power's energy storage manufacturing capabilities, strengthening SK On's position in the US battery energy storage system (BESS) market. He noted that SK On regards NeoVolta Power as a strategic partner, and the two parties will seek new business opportunities by integrating their respective capabilities to deliver BESS solutions that meet evolving market demands.

NeoVolta Power will produce battery energy storage systems for commercial, industrial, and utility-scale applications in Pendergrass, Georgia. The facility, with an annual capacity of 2 GWh, is expected to begin operations within the coming weeks. The agreement designates SK On as the primary cell supplier for NeoVolta Power's BESS products based on LFP pouch cells.

Given the scale and multi-year nature of this cooperation, NeoVolta Power is evaluating capacity expansion in Pendergrass, including a second production line designed around pouch LFP cells. The Pendergrass facility aims to achieve an annual capacity of 8 GWh by 2028.

Ardes Johnson, CEO of NeoVolta, stated that this cooperation helps NeoVolta enter the large-scale energy storage sector and continue advancing its US manufacturing platform. The initial agreement secures a long-term supply of US-made LFP cells for capacity expansion at the Pendergrass facility, while the broader cooperation framework enables NeoVolta Power to manufacture energy storage battery packs for SK On. These initiatives will support the company in building an energy storage platform for the domestic market to meet the growing demand for BESS solutions.