SK On Wins $1.1 Billion U.S. ESS Battery Deal
SK On has secured a major order worth about 1.5 trillion won ($1.09 billion) in the U.S. energy storage system (ESS) market, expanding beyond its focus on high-nickel batteries for electric vehicles into lithium iron phosphate (LFP) batteries for ESS.SK On said on Aug. 31 that it signed a battery-ce
SK On has secured a significant contract worth approximately $1.09 billion in the United States energy storage system (ESS) market, marking a shift in its focus from high-nickel batteries for electric vehicles to lithium iron phosphate (LFP) batteries for ESS applications. The company announced on August 31 that it had signed a supply agreement with U.S. ESS maker NeoVolta Power on August 27 at its Gwanhun Campus in Seoul.
Under the five-year contract, SK On will supply 9 gigawatt-hours (GWh) of LFP pouch cells, beginning in 2027 and ending in 2031. The agreement is valued at roughly 1.5 trillion won, with all batteries to be manufactured at SK On's facility in Georgia. SK On plans to convert some production lines at the plant to focus on ESS LFP production in the second half of 2023, initially for Flatiron Energy and subsequently for NeoVolta Power.
The deal underscores SK On's U.S. production capabilities and technological strengths, positioning the company for long-term collaboration. SK On, which already operates about 100 GWh of production capacity in North America, aims for over 20 GWh in global ESS orders this year, with the NeoVolta Power deal accounting for nearly half of that goal.
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