SK On signs 9 GWh LFP cell supply deal with US firm NeoVolta
South Korean firm SK On will serve as the primary cell supplier for NeoVolta Power’s LFP pouch-cell-based BESS products. The companies did not disclose the value of the deal, but market estimates put it at about USD 1.09 billion.
South Korea’s SK On has announced that it has signed a long-term strategic agreement to supply 9 GWh of lithium iron phosphate (LFP) battery cells to US energy storage company NeoVolta Power.
The companies did not disclose the value of the deal, but market estimates put it at about 1.5 trillion won (USD 1.09 billion), according to a report by The Korea Times.
Under the agreement, SK On will supply LFP pouch cells from 2027 through 2031, with production to take place at its manufacturing facility in the US, according to a press release.
SK On will serve as the primary cell supplier for NeoVolta Power’s LFP pouch-cell-based BESS products, establishing SK On as a key battery partner for NeoVolta Power’s expanding portfolio.
The agreement also establishes a framework for broader collaboration leveraging NeoVolta Power’s BESS manufacturing capability. Under this framework, SK On will supply an additional 9 GWh of LFP cells to NeoVolta Power, and NeoVolta Power will produce energy storage packs to be purchased by SK On from 2027 to 2031. Together with the signed cell supply agreement, this additional arrangement will bring the companies’ total partnership volume to 18 GWh, the press release said.
“SK On’s battery cell technology and US manufacturing capabilities, combined with NeoVolta Power’s energy storage expertise and manufacturing capabilities, provide a strong foundation for this strategic partnership,” said Steve Bond, President of NeoVolta Power.
“This partnership strengthens SK On’s position in the US BESS market and brings together SK On’s US-made LFP battery technology with NeoVolta Power’s growing energy-storage manufacturing capabilities,” said Daejin Choi, Head of ESS Business at SK On. “We view NeoVolta Power as a strategic partner as we expand our presence in the US energy-storage market.”
