NeoVolta announces battery manufacturing collaboration with SK On
Energy technology firm NeoVolta and its subsidiary NeoVolta Power have entered into a strategic supply and manufacturing agreement with South Korean manufacturer SK On.
Announced Aug. 31, the five-year deal begins with SK On supplying 9 GWh worth of U.S.-manufactured lithium iron phosphate (LFP) battery cells to NeoVolta Power. Deliveries of these cells will take place from 2027 to 2031, and will establish a “framework for broader collaboration,” where SK On will supply NeoVolta with an additional 9 GWh, and NeoVolta will product energy storage packs for purchase by SK On in return.
NeoVolta CEO Ardes Johnson says the agreement “represents an important milestone” in his company’s expansion into the realm of large-scale energy storage. Additionally, the deal bolsters the company’s domestic manufacturing platform buildout at its Pendergrass, Georgia facility.
“The initial agreement secures long-term access to U.S.-manufactured LFP cells for our Pendergrass production expansion, while the broader collaboration positions NeoVolta Power to manufacture energy storage packs for SK On,” Johnson says. “Together, these initiatives reinforce our strategy to build a domestic energy storage platform designed to meet growing demand for reliable, high-performance BESS solutions.”
In total, the companies expect their initial cell supply agreement and broader pack manufacturing collaboration to support up to 18 GWh of combined activity. The partnership presents a unique opportunity for capacity expansion, including a second production line solely based around pouch-format LFP battery cells.
A strategic opportunity
The deal not only establishes SK On as a supply chain partner and customer for NeoVolta, but advances both companies’ presence in the wider American battery market. As energy storage and batteries become high priorities in the U.S. energy space, the two firms are working to position themselves as leaders in the sector, officials say.
Bringing on SK On as a long-term partner and customer strengthens NeoVolta as a storage provider at a crucial time, NeoVolta representatives add. The partnership’s scale and timeline also further support the company’s evaluation of additional capacity at its Pendergrass facility.
“This partnership strengthens SK On’s position in the U.S. BESS market and brings together SK On’s U.S.-made LFP battery technology with NeoVolta Power’s growing energy storage manufacturing capabilities,” says Daejin Choi, head of energy storage system business at SK On. “We view NeoVolta Power as a strategic partner as we expand our presence in the U.S. energy storage market.
“By combining our respective capabilities, we will pursue new commercial opportunities and deliver competitive BESS solutions that meet evolving market needs.”
NeoVolta says its initial Pendergrass production line remains on schedule for its commissioning and production-ramping activities. The company also expects this new partnership to expand that facility to a two-line manufacturing platform, which could target up to 8 GWh worth of annual battery production by 2028.
