SK On is strengthening its position in the U.S. battery energy storage system (BESS) market. The South Korean battery maker has signed a five-year agreement with U.S.-based NeoVolta Power to supply 9 GWh of lithium iron phosphate (LFP) battery cells for energy storage systems manufactured in the United States.

The agreement covers the period from 2027 to 2031 and calls for SK On’s LFP pouch cells to be produced at one of the company’s U.S. manufacturing facilities. SK On will become the primary cell supplier for NeoVolta Power’s BESS products, establishing a strategic partnership aimed at addressing growing demand for energy storage solutions in the American market.

Partnership expands to 18 GWh

The agreement goes beyond the initial cell supply deal. SK On and NeoVolta Power have also established a framework for an additional 9 GWh of LFP cell supply. Under this arrangement, SK On will provide additional cells to NeoVolta Power, which will manufacture battery packs that will subsequently be purchased by SK On.

Taking both agreements into account, the companies’ total collaboration will therefore reach 18 GWh between 2027 and 2031.

The agreement was formally signed on August 27 at SK On’s headquarters in Seoul, in the presence of Daejin Choi, Head of SK On’s ESS Business, and Steve Bond, President of NeoVolta Power.

SK On looks beyond EV batteries with LFP technology

The deal is particularly significant because it highlights SK On’s strategy of diversifying its business beyond electric vehicle batteries.

The company has traditionally focused on high-nickel battery cells for the automotive sector, but it is increasingly expanding its portfolio to include LFP technology. LFP batteries are well suited to stationary energy storage thanks to their competitive cost, long cycle life and thermal stability.

Local U.S. production is another key element of the strategy. For SK On, the agreement secures significant production volumes for its American operations, helping increase plant utilization while supporting improved profitability.

NeoVolta Power to manufacture batteries in the U.S.

NeoVolta Power specializes in LFP-based energy storage systems for utility-scale as well as commercial and industrial applications.

The company operates a manufacturing facility in Pendergrass, Georgia, designed for high-volume BESS production. NeoVolta Power is majority-owned by NeoVolta Inc., a U.S.-based energy technology company developing energy storage solutions for residential, commercial and utility-scale markets.

According to Steve Bond, President of NeoVolta Power, combining SK On’s battery technology and U.S. manufacturing capabilities with NeoVolta Power’s expertise in energy storage and manufacturing should allow the two companies to capitalize on growing demand for BESS solutions in the United States.

Daejin Choi, Head of SK On’s ESS Business, said the partnership will bring together SK On’s U.S.-made LFP battery technology and NeoVolta Power’s expanding manufacturing capabilities, creating new commercial opportunities in the energy storage market.

From EV batteries to energy storage: an increasingly important market

The agreement highlights a broader trend in the battery industry: the rapid growth of energy storage is becoming an increasingly important diversification opportunity for major battery manufacturers.

LFP batteries, already widely used in electric vehicles, are also gaining ground in grid-connected energy storage systems. As renewable energy capacity expands, the ability to store electricity and release it when needed is becoming increasingly important for balancing power generation and demand.

For SK On, the 18 GWh collaboration with NeoVolta Power therefore represents more than a battery supply contract. It is another concrete step toward building a stronger BESS business in the United States, alongside its established position as a supplier of batteries for electric vehicles.

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