US battery storage company NeoVolta Power has locked in five years’ worth of US-made battery cells from Seoul-headquartered SK On to help scale up NeoVolta’s Georgia factory.
Under a new supply agreement, SK On will supply NeoVolta Power with 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) cells from 2027 through 2031.
Those cells will be shipped to NeoVolta Power’s factory in Pendergrass, Georgia, where they’ll be assembled into battery energy storage systems for commercial, industrial, and utility-scale projects. SK On will become the primary cell supplier for NeoVolta Power’s LFP pouch-cell storage products.
The deal has two parts, but only one is firm so far.
The signed agreement covers the first 9 GWh. The companies have also laid out a framework under which SK On would supply another 9 GWh of cells, NeoVolta Power would turn them into battery packs, and SK On would then buy those packs.
If part 2 moves ahead, the collaboration would reach 18 GWh between 2027 and 2031. But the additional 9 GWh still depends on future orders and commercial terms, so it isn’t locked in yet.
“This collaboration represents an important milestone in NeoVolta’s expansion into large-scale energy storage and the continued buildout of our US manufacturing platform,” said NeoVolta CEO Ardes Johnson. “The initial agreement secures long-term access to US-manufactured LFP cells for our Pendergrass production expansion, while the broader collaboration positions NeoVolta Power to manufacture energy storage packs for SK On.
“Together, these initiatives reinforce our strategy to build a domestic energy storage platform designed to meet growing demand for reliable, high-performance BESS solutions.”
LFP batteries make a lot of sense for stationary storage. They generally offer long cycle life and strong thermal stability, and they don’t use nickel or cobalt. They aren’t as energy-dense as some other lithium-ion chemistries, but they can be bigger because weight and size matter a lot less.
NeoVolta launched its US battery manufacturing platform in January. At the time, the company said the Pendergrass plant’s first line was designed to produce 2 GWh of battery storage annually, with room to scale up to 8 GWh.
That first production line is now going through commissioning and ramp-up. NeoVolta says the SK On deal could support a second line built around pouch-format LFP cells, bringing the factory’s targeted annual production capacity to up to 8 GWh in 2028.
Read more: The US added a record 20.2 GWh of battery storage in just 3 months
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