(Updated to include SK On's statement as well as details and background information from paragraph 3)
SEOUL, Aug. 30 (Reuters) - South Korean battery manufacturer SK On announced on Monday that it had signed a contract to supply 9 gigawatt-hours (GWh) of lithium- iron phosphate (LFP) battery cells to the U.S. company NeoVolta Power, which are to be used in energy storage systems starting in 2027 over a five-year period.
The pouch cells are to be manufactured at SK On’s plant in the U.S. state of Georgia, according to a statement.
SK On did not disclose the value of the contract, but industry estimates put it at around 1.5 trillion won.
The agreement comes as SK On expands into the energy storage systems business to offset weaker demand for electric vehicles. Last year, the company signed a contract with the U.S. firm Flatiron Energy Development (link) to supply LFP batteries for energy storage systems.
SK On announced that it also plans to expand its partnership with NeoVolta Power later this year through a separate agreement under which it would supply an additional 9 GWh of LFP battery cells. NeoVolta would assemble these into battery packs using its expertise in battery pack technology.
The planned partnership would increase the total volume of collaboration between the two companies to 18 GWh.
SK On had set a goal of securing global orders for energy storage systems totaling more than 20 GWh this year and stated that it is negotiating additional supply contracts totaling more than 10 GWh with several U.S. customers.
Other South Korean battery manufacturers, including LG Energy Solution and Samsung SDI, have also retooled their electric vehicle battery production lines to manufacture batteries for energy storage systems as U.S. subsidies for electric vehicles are set to expire.
Energy storage batteries are based on a chemistry similar to that of vehicle batteries and store electricity for facilities such as data centers, thereby helping to balance electricity demand and supply.
Monday, August 31, 2026, 1:38 a.m.
Source: reuters.com
