Overview
- SK On agreed to supply NeoVolta Power with 9 gigawatt-hours of lithium iron phosphate pouch cells over five years starting in 2027, a contract announced on Monday, Aug. 31, 2026.
- Industry estimates value the initial contract at about 1.5 trillion won (roughly US$1.09 billion), though SK On did not disclose a price.
- The cells will be made at SK On’s Georgia plant and NeoVolta will assemble them into battery packs under a tolling-style arrangement that keeps assembly local.
- SK On said it plans a separate agreement later this year to add another 9 GWh, taking the partnership potential to 18 GWh as the company seeks multi‑GWh ESS orders to steady U.S. plant utilization.
- The deal ties into a broader shift by SK On and other Korean makers toward LFP grid storage because it is cheaper and safer for large-scale storage and because U.S. demand for ESS is growing from data centers and grid upgrades.