SK On signs 9 GWh US storage battery deal with NeoVolta Power

NeoVolta confirmed Sept. 16 its five-year agreement with South Korea's SK On to buy 9 gigawatt-hours of American-made lithium iron phosphate battery cells for utility energy storage systems.

The supply arrangement covers deliveries from 2027 through 2031. The shipments will provide dedicated cell feedstock for NeoVolta Power's stationary storage assembly facility in Pendergrass, Georgia.

SK On will produce the pouch-type cells at its manufacturing complex in Commerce, Georgia. The battery maker is converting lines at the site to stationary storage chemistry.

The 9 gigawatt-hours under firm contract represents enough storage capacity to supply utility-scale electricity projects across regional grids. The volume anchors long-term factory operations at the Georgia plant.

The agreement gives SK On a confirmed buyer as North American electric vehicle sales decelerate. Korean cell manufacturers are reallocating equipment to address surging grid equipment orders.

A broader preliminary framework could expand cooperation between the two companies to 18 gigawatt-hours over the same five-year delivery window. That proposed expansion remains subject to final commercial terms.

Under that framework, SK On would supply an additional 9 gigawatt-hours of cells. NeoVolta Power would assemble them into complete storage packs for SK On to repurchase.

SK On and NeoVolta Power signed the initial supply pact at SK On's Gwanhun campus in Seoul on Aug. 27 before releasing formal transaction terms.

Choi Dae-jin, head of the energy storage business division at SK On, led negotiations for the Korean cell manufacturer. The company wants local manufacturing agreements that fit regional demand, Choi said.

Steve Bond, president of NeoVolta Power, signed the contract for the American storage integrator. The supply collaboration provides a domestic foundation for utility manufacturing, Bond said.

NeoVolta Power is majority-owned by California-based NeoVolta Inc., which holds a 60% controlling interest in the operating company. The unit produces commercial, industrial and utility storage platforms.

Chinese solar producer LONGi and Italian technology provider PotisEdge hold minority equity stakes of 20% each in the joint venture. The partners established the business to build domestic integration capacity.

NeoVolta Power secured $23 million earlier this year to build its initial 2 gigawatt-hour assembly plant in Pendergrass, Georgia. The factory began operations to serve regional power developers.

The company plans to expand the Pendergrass facility into a dual-line platform with an annual manufacturing capacity of 8 gigawatt-hours by 2028. The factory sits within 20 miles of SK On's cell plant.

For SK On, the deal marks the second major grid storage supply agreement concluded in the United States over the past 12 months. The supplier has been repositioning its regional commercial strategy.

SK On signed a 7.2 gigawatt-hour system contract with renewable developer Flatiron Energy in September 2025. That agreement also draws cells directly from the Commerce site in Georgia.

SK On introduced its second-generation containerized utility system, branded GridOn, to American electricity developers earlier this summer. The modular product offers up to 5.7 megawatt-hours of usable storage capacity.

Securing domestic manufacturing agreements allows SK On to maximize federal production tax credits under the United States Inflation Reduction Act. The statute rewards local cell fabrication.

Section 45X of the legislation provides battery cell producers with manufacturing tax credits of up to $35 per kilowatt-hour. Domestic assembly generates additional tax incentives for developers who buy the packs.

Power project developers receive a 10% domestic content bonus under federal tax rules when they purchase storage equipment containing American-made cells. Chinese imports cannot qualify for those financial incentives.

SK On faced falling factory operating rates in Georgia after ending its joint automotive battery venture with Ford Motor Co. in early 2026. Slower electric truck adoption altered initial production plans.

Repurposing high-nickel electric vehicle lines into lithium iron phosphate storage lines helps SK On protect plant utilization. The transition avoids idling expensive manufacturing cleanrooms in Georgia.

Competing South Korean producers LG Energy Solution and Samsung SDI have also shifted North American factory lines from passenger vehicles to utility storage. The pivot spans the entire Korean battery group.

Chinese battery makers CATL and BYD dominate global lithium iron phosphate cell refining and assembly. United States trade tariffs and federal procurement rules limit their direct entry into American grid projects.

Deliveries under the initial 9 gigawatt-hour contract will begin in 2027 and run through 2031. SK On aims to negotiate the second 9 gigawatt-hour consignment contract before Dec. 31.

The companies did not publish the financial value of the contract, and NeoVolta has not filed transaction terms with securities regulators. Industry estimates place the value near 1.5 trillion won ($1.1 billion).