SK On and NeoVolta Power Sign an 18 GWh US Battery Cell and Storage Deal

SK On and NeoVolta Power have signed a five-year deal worth up to 18 GWh of US-made lithium iron phosphate (LFP) battery cells and storage packs, covering 2027 to 2031. It is aimed at utility-scale and commercial storage, not homes.

How the deal works

Energy-Storage.News reports that the agreement was signed on 27 August and announced the next day. It is reciprocal. SK On, the South Korean cell maker, will supply 9 GWh of LFP pouch cells made at its US facilities. NeoVolta Power will build packs with a further 9 GWh of cells and sell them back to SK On, which makes the 18 GWh total.

NeoVolta Power is a joint venture. Energy-Storage.News says NeoVolta holds 60 per cent, the Chinese solar maker LONGi 20 per cent and strategic investors the remaining 20 per cent. Solar Power World says SK On becomes the primary cell supplier for NeoVolta's pouch-cell LFP storage products.

The factory

The products will be built at a plant in Pendergrass, Georgia, with initial capacity of 2 GWh a year. The reports differ on the ramp-up: Solar Power World says NeoVolta is evaluating a second line and targets 8 GWh a year by 2028, while Energy-Storage.News says up to two lines by 2030, scalable to 8 GWh. We could not reconcile the two timelines, so treat both as company targets.

Not a home battery deal

NeoVolta's parent company made its name in home storage, and that is easy to assume from the name. Energy-Storage.News is clear that this deal covers utility-scale and commercial and industrial storage, not residential systems. The CEO described it, in Solar Power World, as "an important milestone in NeoVolta's expansion into large-scale energy storage."

Why it matters

The deal shows how US storage supply chains are being rebuilt around domestic LFP cells. LFP is the chemistry used in most modern home batteries, as we explain in our comparison of LFP and NMC chemistry. Where a cell is made increasingly matters for US trade rules, such as the new solar tariffs set earlier this month. For a household, the immediate effect is none: no home products or prices were announced.

Sources

• Energy-Storage.News: SK On signs 18GWh reciprocal LFP supply deal with NeoVolta Power
• Solar Power World: NeoVolta US-made BESS to use SK On LFP cells

Related guides

Keep reading, or check your own numbers:

• LFP versus NMC chemistry in home batteries
• Home batteries in the United States
• US sets new solar tariffs and minimum import prices