South Korean battery maker SK On will supply US' energy storage firm Neovolta Power with 9GWh of lithium-iron-phosphate (LFP) pouch battery cells over 2027-31, conglomerate SK Innovation said on 31 August.
The cell supply will come from the battery maker's facilities in US' Georgia, said SK Innovation, which owns SK On. SK On and Neovolta are planning to further partner up this year via a separate contract that involves another 9GWh of energy storage systems (ESS) battery cells from SK On, while Neovolta will provide energy storage packs in return, according to the two companies.
SK earlier outlined its plans to win ESS orders amounting to 20GWh this year. Its fellow competitors such as LG Energy Solution and Samsung SDI have similarly turned to the US ESS market given an electric vehicle (EV) slowdown, repurposing their EV battery lines for ESS production.
SK operates two EV battery manufacturing facilities with a current total production capacity of 22GWh in Georgia's Commerce city in the US. Its 35 GWh/yr joint EV battery cells plant with major South Korean conglomerate Hyundai Motor in Georgia started commercial production in early June.
Neovolta's Pendergrass facility in Georgia has an initial battery ESS production capacity of 2 GWh/yr, with ramp up expected in July-September. The company aims to expand the site to up to 8 GWh/yr of capacity in 2028.
