ICH Expects to Benefit from SK On's $1.1 Billion ESS Contract in the US
ICH is anticipating an expansion in its supply of materials for battery modules in line with the growth of SK On’s energy storage system (ESS) business in the United States.
ICH announced on September 8 that SK On had recently signed a contract worth 1.5 trillion won with NeoVolta, a US-based specialist in ESS, for the supply of LFP pouch battery cells for ESS. The company stated that this is expected to benefit its related materials business as well.
Under the new agreement, SK On will supply NeoVolta with a total of 9 gigawatt-hours (GWh) of LFP pouch battery cells over the course of five years. The two companies are also pursuing an additional collaboration for another 9 GWh within this year, beyond the scope of the existing agreement, making it likely that the scale of supply could expand in the future.
Back in May, ICH successfully passed the final quality test for materials used in SK On’s ESS battery modules. The material in question is a high-performance component placed between LFP pouch battery cells and serves to absorb external shocks and vibrations, thereby enhancing the structural stability of the battery modules.
It is also equipped with flame retardant properties that help contain the spread of heat in the event of a battery fire. ICH explained that passing this quality verification demonstrated the technological capability and product competitiveness of its materials for ESS battery modules to SK On.
There are projections that, if SK On’s US ESS business goes into full-scale operation, ICH will be able to accelerate the expansion of its material supplies as well. In particular, with increased investment in data centers and power infrastructure in the United States, demand for ESS is growing, which is expected to create new growth opportunities for the battery materials market.
An ICH representative stated, “With the completion of the quality verification for ESS battery module materials in May, we have secured technological prowess and product competitiveness,” adding, “As our customer’s large-scale ESS orders ramp up, we will actively respond to ensure these lead to orders and mass production supply.”
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They further added, “We will continue to expand our business domain and diversify our customer base, focusing on new portfolios such as ESS and robotics.”
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