SK On signs ESS battery deal with U.S. firm NeoVolta Power
SEOUL, Aug. 31 (Yonhap) -- South Korean battery maker SK On said Monday it has s...
SK On, a South Korean battery manufacturer, has signed a long-term agreement with U.S. company NeoVolta Power to supply energy storage system (ESS) battery cells. The deal involves SK On supplying 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) battery cells over five years, starting in 2027, with production taking place in Georgia.
NeoVolta Power brings its energy storage expertise and manufacturing capabilities to the partnership, which is expected to accelerate growth for both companies in the U.S. ESS battery market. While the exact value of the deal is not disclosed, estimates suggest it could be worth around 1.5 trillion won (USD 1.09 billion). SK On plans to sign a separate agreement with NeoVolta Power within the year to supply another 9 GWh of LFP cells, with the U.S. firm manufacturing energy storage packs to be purchased by SK On through 2031.
This partnership allows SK On to expand its presence in the U.S. ESS battery market and address growing local demand, as it seeks to overcome challenges in the electric vehicle battery market.
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