SK On lands 5-year deal to supply ESS batteries to US NeoVolta unit

SK On will provide 9 gigawatt-hours of lithium iron phosphate battery cells for NeoVolta Power LLC's energy storage systems over five years, the South Korean battery maker said Aug. 31, expanding its presence in the energy storage system market.

The supply of LFP pouch battery cells will begin in 2027 until 2031, with the cells to be manufactured at SK On's plant in Georgia, the company said in the statement.

In addition, SK On said it "plans to pursue a strategic partnership with Neovolta Power through a separate contract within the year, providing an additional 9 GWh of LFP battery cells for ESS on a consignment basis and purchasing them as pack products in which Neovolta Power has expertise."

SK On said it is expanding its business in line with the recent growth of the ESS market in the US, diversifying its product portfolio beyond high-nickel batteries for electric vehicles to include LFP batteries for ESS.

The diversification comes as SK On and US automaker Ford Motor Co. ended their US joint-venture battery partnership in early 2026.

As a subsidiary of Neovolta Inc., a US energy technology company, NeoVolta Power is an ESS manufacturing company with a 2 GWh plant in Pendergrass, Georgia

"The initial agreement secures long-term access to US-manufactured LFP cells for our Pendergrass production expansion, while the broader collaboration positions NeoVolta Power to manufacture energy storage packs for SK On," said Ardes Johnson, CEO of NeoVolta.

"The multi-year strategic collaboration with SK On is expected to accelerate NeoVolta Power's expansion from its initial Pendergrass production line to a two-line manufacturing platform targeting up to 8 GWh of annual BESS production capacity in 2028," Neovolta said.

SK On's South Korean counterparts have been expanding into ESS and as a result, are converting existing battery plants in the US to also make batteries for ESS, as in the case of LG Energy Solution. SK On signed a similar ESS deal with Flatiron Energy Development in September 2025.

Platts, part of S&P Global Energy, assessed battery-grade lithium hydroxide at $19,900/metric ton CIF North Asia and lithium carbonate at $19,600/mt CIF North Asia Aug. 31, both up $100/mt from Aug. 28.