SK On to Supply 9GWh of Batteries to NeoVolta in the U.S., Accelerates ESS Expansion

Supplying LFP Cells for Five Years Starting in 2027
Total Cooperation to Reach 18 GWh Including Additional Agreements
Expected to Improve U.S. Plant Utilization and Customer Diversification

SK On has accelerated the expansion of its North American ESS (Energy Storage System) business by signing a battery cell supply contract worth 9 GWh in the U.S. ESS market. Industry estimates place the value of the contract at approximately 1.5 trillion won.

Daejin Choi, Head of ESS Business at SK On (right), and Steve Bond, President of NeoVolt Power, are taking a commemorative photo after signing a battery cell supply contract for ESS at SK On Gwanhoon Campus in Jongno-gu, Seoul on the 27th. SK On

SK On announced on August 31 that it has signed a supply contract for ESS battery cells with U.S.-based ESS company NeoVolta Power. The signing ceremony was held on August 27 at SK On Gwanhun Campus in Jongno-gu, Seoul, and was attended by Daejin Choi, head of the ESS division at SK On, and Steve Bond, president of NeoVolta Power, among others.

Under this contract, SK On will supply NeoVolta Power with a total of 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch-type battery cells over five years from 2027 to 2031. The products will be manufactured at the company’s plant in Georgia, United States.

With this order, SK On has secured a long-term supply channel for LFP batteries for ESS in North America. The company aims to expand its product portfolio beyond high-nickel batteries for electric vehicles to include LFP batteries for ESS, while also increasing the operating rate of its U.S. manufacturing facility and further diversifying its customer base.

The two companies plan to expand the scale of their cooperation. Within the year, SK On intends to sign a separate contract to provide NeoVolta Power with an additional 9 GWh of LFP battery cells. In return, SK On will receive battery packs produced by NeoVolta Power utilizing these cells, pursuing a reciprocal supply arrangement. If everything goes as planned, the total scale of cooperation between the two parties will reach 18 GWh.

SK On has recently been ramping up its business centered on the U.S. ESS market. In September of last year, the company signed a 1 GWh ESS supply contract with U.S. renewable energy developer Flatiron. In June of this year, it launched its ESS product brand “GRIDON” in Texas.

In Korea, the company secured 284 megawatts (MW) out of a total of 565 MW in the second ESS central contract market bidding announced in February of this year.

SK On also has established a domestic manufacturing base in the United States. By combining the capacity of SK Battery America, SK On Tennessee, and the HSBMA joint venture plant with Hyundai Motor Group, it has secured a production capacity of approximately 100 GWh.

Daejin Choi, head of the ESS division at SK On, stated, “This contract will serve as a turning point in strengthening our position in the U.S. ESS market. Based on our local production capabilities, we will continue to expand new customers and business opportunities.”

This content was produced with the assistance of AI translation services.