[Today's Signal] SK On Expands U.S. Battery Strategy Beyond EVs with 9 GWh ESS Deal
SK On is accelerating its expansion into the U.S. energy storage system market, leveraging its large-scale local manufacturing footprint to diversify beyond electric vehicle batteries and establish LFP batteries as a new growth pillar.The South Korean battery maker said on Aug. 31 that it has signed
South Korean battery manufacturer SK On has announced a five-year deal to supply 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) battery cells to U.S. energy storage systems (ESS) company NeoVolta Power. The agreement, signed on August 27, allows SK On to utilize its manufacturing infrastructure in Georgia to produce LFP pouch cells starting in 2027.
This move expands SK On's presence beyond electric vehicle batteries, positioning LFP batteries as a new growth pillar. LFP chemistry is gaining traction in ESS applications due to its cost-effectiveness, cycle life, and safety features. The deal not only secures a long-term customer for SK On's locally produced ESS batteries but also improves the utilization of its U.S. manufacturing capacity.
SK On currently has around 100 GWh of annual production capacity in the United States through various plants. The company plans to extend the agreement with NeoVolta Power by a separate deal for another 9 GWh of LFP cells. This partnership aligns with SK On's broader strategy to diversify its business from EV batteries to ESS, leveraging its large U.S. manufacturing footprint and expanding LFP product portfolio.
Written by urgent.news from Korea IT Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
