NeoVolta Secures 9 GWh LFP Battery Supply Deal With SK On
The agreement ensures a domestic supply of lithium iron phosphate cells for NeoVolta's Georgia-based energy storage plant through 2031.
NeoVolta Power has signed a supply agreement with Seoul-based SK On to secure 9 GWh of US-manufactured lithium iron phosphate (LFP) battery cells. The deal establishes a critical long-term component pipeline for NeoVolta's energy storage operations through 2031.
Under the terms of the agreement, SK On will deliver LFP pouch cells between 2027 and 2031. These cells will be integrated at NeoVolta's manufacturing facility in Pendergrass, Georgia, to build battery energy storage systems (BESS) for utility-scale, industrial, and commercial applications. Beyond the firm supply deal, the two companies have established a framework for an additional 9 GWh of cells. In this proposed arrangement, NeoVolta would assemble the cells into packs for SK On to purchase, potentially bringing the total collaboration to 18 GWh.
Scaling Domestic Production
NeoVolta launched its US battery manufacturing platform in January, focusing specifically on LFP chemistry. While LFP batteries offer lower energy density than some other lithium-ion variants, they are highly preferred for stationary storage due to their superior thermal stability, longer cycle life, and the absence of cobalt and nickel.
The Pendergrass plant was originally announced with an initial production capacity of 2 GWh annually. However, the facility is designed to be scalable, with a total target capacity of 8 GWh by 2028. This expansion is intended to meet the rising demand for domestic energy storage solutions as the US grid transitions toward more renewable sources.
Strategic Industry Impact
This partnership reduces NeoVolta's reliance on imported cells, a significant hurdle for many US-based energy firms seeking to capitalize on domestic manufacturing incentives. By securing a steady stream of US-made cells, NeoVolta can more reliably scale its BESS offerings to meet the growing needs of utility providers and industrial clients.
"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.
Future Outlook
Industry observers will now watch to see if the secondary framework for the additional 9 GWh of cell assembly is finalized. If the reciprocal agreement is signed, it would transform the relationship from a simple supplier-customer dynamic into a deeper manufacturing partnership. For now, the primary focus remains the 2027 rollout of the initial 9 GWh supply, which will determine the pace at which NeoVolta can reach its 8 GWh annual production target in Georgia.