Overview
- SK On on Monday, Aug. 31 signed a five-year contract to provide NeoVolta Power with 9 GWh of lithium iron phosphate (LFP) pouch cells for delivery from 2027 through 2031, with production slated at SK On’s Georgia plant.
- Both companies disclosed a framework to expand the deal into a reciprocal tolling arrangement that could bring combined activity to 18 GWh but said the additional 9 GWh is still under development and not yet final.
- NeoVolta’s Pendergrass, Georgia pack factory is entering commissioning for an initial roughly 2 GWh annual line and targets scaling to as much as 8 GWh a year by 2028 if the partnership and demand support expansion.
- SK On did not state the contract value; industry estimates from multiple outlets place the initial 9 GWh deal near 1.5 trillion won (about US$1.09 billion).
- The agreement advances SK On’s shift from weaker EV battery demand into grid-scale storage and responds to U.S. incentives and domestic-content rules that are pushing firms to source non-Chinese, U.S.-made cells for battery energy storage systems.