Shares traded 5.65 percent higher at 123,500 won ($89.57) as of 10:44 a.m. on the KOSPI, standing out in a bearish market with the key index losing nearly 2 percent. The stock opened at 119,300 won and rose as high as 125,300 won in early trading.
The rally came after SK on said it signed a five-year deal with U.S. energy storage company NeoVolta Power to supply 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch battery cells from 2027 through 2031. LFP is a battery chemistry known for relatively low cost, safety and long life. The agreement is estimated to be worth about 1.5 trillion won ($1.09 billion).
The cells will be produced at SK on's plant in Georgia, with the long-term order expected to help raise utilization at its U.S. facilities. NeoVolta Power, a subsidiary of NeoVolta, manufactures energy storage systems at a facility in Pendergrass, Georgia.
The partnership could expand further, with an additional 9 GWh supply agreement planned for this year. If completed, the two deals would bring the total volume to 18 GWh.
The deal also supports SK on's push beyond electric vehicle batteries and into energy storage. ESS systems store electricity and release it when needed, and the battery maker is targeting 20 GWh of new orders in the global market this year.
Higher oil prices also provided support for SK Innovation, which operates refining and petrochemical businesses. Brent crude rose about 1.4 percent to $89.38 a barrel in Asian trading Monday after U.S. forces struck Iranian launchers on Larak Island in the Strait of Hormuz.
The gains marked a rebound after recent pressure on the stock. SK Innovation said on Aug. 25 that it would absorb SK IE Technology (SKIET), a battery materials subsidiary it spun off in 2019. Shares fell for two consecutive sessions following the announcement before recovering some of the losses.
AJP Takeaways
• SK Innovation shares traded 5.65 percent higher at 123,500 won ($89.57) as of 10:44 a.m. on the KOSPI.
• SK On agreed to supply NeoVolta Power with 9 GWh of LFP battery cells over five years from 2027, with the contract estimated by industry sources at about 1.5 trillion won ($1.09 billion).
• SK On plans to produce the cells in Georgia and is pursuing further cooperation that could expand its business with NeoVolta Power to 18 GWh.
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