NeoVolta signs 18 GWh U.S. battery supply deal with SK On

Solmar Insights

NeoVolta Power has reached a five-year agreement with SK On for the supply and co-manufacture of lithium iron phosphate (LFP) battery cells at a U.S. facility. Under this deal, SK On will provide 9 GWh of U.S.-made LFP cells directly to NeoVolta from 2027 to 2031, while an additional 9 GWh of LFP cells will support a broader collaboration spanning the same period. The companies expect the partnership to enable up to 18 GWh of combined battery cell and pack activity over five years.

Structure of the collaboration

The NeoVolta-SK On cooperation is structured around dual supply streams and co-manufacturing. SK On will act as the primary supplier, delivering 9 GWh of American-manufactured LFP cells for NeoVolta’s use over five years. In parallel, the companies have committed to a broader supply and manufacturing framework that opens the door to an additional 9 GWh of LFP cells for mutual activity, including NeoVolta supplying energy storage packs for SK On. The multi-layered agreement delivers security of cell supply for both parties and establishes a long-term partnership for commercial and utility-scale battery energy storage systems (BESS).

The agreement is designed to synchronize with both companies’ U.S. manufacturing investment and long-term strategies. SK On strengthens its presence in the BESS segment, while NeoVolta Power is positioned as a major domestic producer of storage systems leveraging pouch-format LFP cells. This approach reflects current industry pressures to localize supply chains under U.S. energy policy guidelines.

Production ramp at Pendergrass facility

NeoVolta will manufacture its BESS products in Pendergrass, Georgia, at a dedicated plant that is scheduled to open in the coming weeks. The facility will launch with a 2 GWh per year capacity and is being evaluated for rapid scaling. Company statements indicate plans for a second production line focused on the pouch-format LFP cells provided through this collaboration. The production roadmap targets an 8 GWh annual output by 2028, representing a fourfold expansion from initial capacity and aligning with evolving market demand for storage solutions at commercial, industrial, and utility scale.

The focus on onshore manufacturing meets both the technical needs for performance and reliability in high-value BESS projects and anticipated IRA (Inflation Reduction Act) domestic content guidelines. For NeoVolta, this facility expansion establishes long-term relevance in the storage supply chain, while for SK On, it delivers an anchor partner to purchase and integrate U.S.-made LFP cells.

Supply chain and market context

This supply and co-manufacturing agreement directly addresses ongoing U.S. energy storage supply chain bottlenecks. The industry is facing surging demand for LFP cells, driven by growth in renewable generation, commercial resilience applications, and state-level energy storage targets. With a five-year procurement horizon and explicit tie to U.S.-based manufacturing, the NeoVolta-SK On partnership offers rare visibility and reliability for institutional buyers and project developers contending with limited domestic cell availability amid ongoing global supply fluctuations.

Establishing a 9 GWh per partner, per direction workflow, the framework is large by national standards. For context, the U.S. commercial and utility-scale BESS market reported landmark installation volumes in the most recent quarter. NeoVolta’s move into higher-volume manufacturing with SK On affiliation demonstrates how U.S. BESS vendors are securing cell access amid trade policy shifts and rising domestic content requirements.

Strategic outlook for buyers and developers

Institutional buyers evaluating U.S.-made LFP-based BESS systems will see expanded capacity from this pact, particularly if NeoVolta achieves its Pendergrass scaling goals. By securing SK On as the primary cell provider, NeoVolta differentiates itself in an increasingly crowded suppliers’ market where inflation, international trade policies, and delivery timelines can upend project economics. The multiyear agreement also signals to developers that greater transparency and reliability in cell supply may now be available for commercial and large-scale storage tenders starting later this decade.

As the site ramps output and large orders become feasible, this Georgia-based manufacturing expansion may become pivotal for BESS developers seeking to de-risk procurement with U.S.-traceable LFP cell and pack sourcing. The deal also enhances both parties’ ability to pursue grid-scale storage contracts, system integrator partnerships, and collaborations with power producers aiming to satisfy regulatory and financial incentives tied to domestic content thresholds.

Reporting via the original publisher