SK On Secures 18 GWh US LFP Battery Supply Deal with NeoVolta Power

SK On formalized a multiyear energy storage partnership with NeoVolta Power on Sept. 1, 2026, establishing a supply framework for up to 18 gigawatt-hours of lithium iron phosphate cells.

The initial contract binds SK On to deliver nine gigawatt-hours of pouch cells from 2027 through 2031. SK On and NeoVolta Power executed the transaction at SK On headquarters in Seoul on Aug. 27.

Choi Dae-jin, head of the energy storage division at SK On, signed the agreement with NeoVolta Power President Steve Bond. The signing marks SK On's first major stationary storage contract this year.

Battery cells will roll off production lines at SK On's manufacturing facility in Commerce, Georgia. The American-made cells will supply NeoVolta Power's battery energy storage system assembly plant in Pendergrass, Georgia.

A second framework covers an additional nine gigawatt-hours over the same five-year timeframe. Under that consignment structure, SK On will ship raw cells to NeoVolta Power for integration into finished packs.

SK On will repurchase those completed energy storage packs to distribute them directly under its own commercial brand. The companies aim to finalize that second pack-manufacturing contract before the end of 2026.

Neither manufacturer disclosed financial terms in regulatory disclosures or public announcements. South Korean financial analysts value the initial nine gigawatt-hour firm supply contract at roughly 1.5 trillion won ($1.09 billion).

The long-term agreement secures dedicated base-load orders for SK On's Georgia manufacturing lines. It allows the cell maker to convert underutilized automotive lines toward stationary grid equipment without building proprietary pack assembly facilities.

Heavy capital expenditures and debt service requirements have pushed the South Korean battery manufacturer to limit speculative outlays. Outsourcing pack integration to domestic partners preserves capital while addressing utility customer demand, equity analysts said.

The transaction secures nearly half of SK On's 2026 energy storage order target of 20 gigawatt-hours. The initial nine gigawatt-hour firm order represents 45% of that annual operational milestone.

Prior to this transaction, SK On held a single one-gigawatt-hour energy storage contract with North American developer Flatiron Energy. That 2025 agreement included non-binding negotiations for up to 6.2 gigawatt-hours.

South Korean battery producers are shifting production capacity from high-nickel electric vehicle cells to stationary energy storage systems. Growth in utility storage deployments has outpaced passenger vehicle electrification during 2026.

Lithium iron phosphate chemistries dominate grid-scale installations because they provide greater thermal stability and longer operational cycle life than nickel-manganese-cobalt formulations. They also avoid expensive cobalt and nickel inputs.

SK On operates a standalone 22 gigawatt-hour facility in Georgia and holds roughly 100 gigawatt-hours of joint-venture capacity across North America. Converting lines to stationary cells helps offset sluggish electric vehicle demand.

Rival manufacturers LG Energy Solution and Samsung SDI have also converted idle automotive assembly capacity across the United States. Korean producers face expanding stationary storage competition from Tesla and domestic integration specialists.

NeoVolta Power was established in January 2026 by residential storage provider NeoVolta, LONGi and PotisEdge. NeoVolta holds a 60% controlling equity stake in the manufacturing venture.

NeoVolta Power is constructing a two-gigawatt-hour assembly facility in Georgia and plans to expand site capacity to eight gigawatt-hours. Initial cell deliveries from SK On are scheduled to commence in early 2027.