SK On wins $1.1 bil. ESS battery deal in US
SK On, the battery-making unit of Korea’s SK Innovation, said Monday it has signed a long-term deal to supply battery cells for energy storage systems (ESS) to U.S. company NeoVolta Power. Under the five-year deal, SK On will supply a total of 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch cells from 2027 to 2031. The batteries will be produced at SK On’s plant in Georgia. The…
SK On, the battery-making arm of South Korea's SK Innovation, has secured a significant five-year deal to supply battery cells to U.S. firm NeoVolta Power. Under the agreement, SK On will provide 9 gigawatt-hours of lithium iron phosphate (LFP) pouch cells from 2027 to 2031. The batteries will be manufactured at SK On's plant in Georgia.
Although the exact contract value has not been disclosed, industry estimates suggest it could be around $1.09 billion, or 1.5 trillion won. This deal is expected to provide SK On with a steady customer for its ESS batteries in the United States while boosting production at the company's domestic facilities. SK On has been diversifying its EV battery offerings as demand for high-nickel EV batteries has waned.
The company has shifted its focus to LFP batteries, which are favored in ESS due to their lower cost and extended lifespan. NeoVolta Power chose SK On as a critical battery supplier, highlighting the Korean firm's technological expertise and production capabilities in the U.S. The two companies intend to strengthen their partnership further.
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- SK On wins $1.1 bil. ESS battery deal in US koreatimes.co.kr
