SK On has secured a large-scale battery cell supply contract in the U.S. energy storage system (ESS) market, accelerating its expansion in North America.
According to industry sources, SK On signed a supply contract for ESS battery cells with U.S. company NeoVolta Power on August 27 at SK On's Gwanhun Campus in Jongno, Seoul. Key officials from both companies, including SK On's ESS Business Head, Choi Dae-jin, and NeoVolta Power President Steve Bond, attended the signing ceremony.
Under the agreement, SK On will supply a total of 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch battery cells to NeoVolta Power over five years, starting in 2027. The batteries will be produced at SK On's facility in Georgia, USA. The contract is estimated to be worth around 1.5 trillion won.
SK On is expanding its business in response to the growth of the U.S. ESS market. The company is diversifying its product lineup beyond high-nickel batteries for electric vehicles to include LFP batteries for ESS, leveraging its local production capabilities to secure new customers. This contract is expected to increase the operational rate of its U.S. factory.
Both companies plan to broaden their collaboration in the ESS sector as part of this agreement.
SK On intends to provide an additional 9GWh of ESS LFP battery cells to NeoVolta Power through a separate contract later this year, establishing a strategic partnership where NeoVolta Power will purchase the battery packs it specializes in. The total collaboration between the two companies is expected to reach 18GWh.
Choi Dae-jin stated, "This contract will further strengthen SK On's position in the U.S. ESS market. We will continue to expand new customers and business opportunities based on our local production capabilities and battery solutions tailored to customer demand."
Steve Bond remarked, "The battery technology and production capabilities of SK On, combined with NeoVolta Power's expertise in ESS manufacturing, form the foundation of this strategic collaboration. We expect this partnership will effectively address the growing demand in the U.S. and accelerate the expansion of both companies' ESS businesses."
Meanwhile, SK On has been working to secure its production base in the U.S., recently completing the restructuring of its battery joint venture with Ford, BlueOval SK, and converting its Tennessee plant into a standalone entity.
* This article has been translated by AI.
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