NeoVolta SK On Battery Cell Supply Agreement Expands U.S. Storage Capacity
August 31, 2026 — NeoVolta Inc and South Korea‑based SK On announced a landmark partnership on August 31, 2026, in Atlanta, GA. The deal binds the two firms in a five‑year NeoVolta SK On battery cell supply agreement aimed at scaling U.S. lithium iron phosphate (LFP) battery production for grid‑scale energy storage. The announcement underscores both companies’ drive to secure a domestic battery supply chain. It also highlights their efforts to meet rising demand from utilities, commercial customers, and AI data-center operators.
Key Deal Highlights
- Long‑Term U.S. LFP Cell Supply – SK On will deliver 9 GWh of U.S.-manufactured LFP pouch cells to NeoVolta each year from 2027 through 2031.
- Additional 9 GWh LFP Cell Supply + Energy Storage Pack Purchase – NeoVolta will purchase a further 9 GWh of LFP cells, packaged as complete BESS modules, under a separate energy storage pack purchase agreement.
- Total Collaboration Volume – The two arrangements combine into an 18 GWh partnership over the contract term.
- Impact on NeoVolta Power Pendergrass Plant – The Pendergrass, GA facility will receive a second production line, raising its BESS manufacturing capacity to 8 GWh per year by 2028.
Strategic Importance
Domestic Supply‑Chain Strengthening
The agreement addresses U.S. policy goals for a resilient battery ecosystem. By sourcing U.S. lithium iron phosphate (LFP) battery cells from SK On’s new Georgia fab, NeoVolta reduces exposure to overseas logistics risks and tariffs.
Expansion of BESS Manufacturing Capacity
NeoVolta’s Pendergrass plant will operate two lines:
- Line 1 – existing 4 GWh/yr capacity handling 2024‑2026 demand.
- Line 2 – added in 2027, delivering an extra 4 GWh/yr, ultimately reaching 8 GWh/yr.
The expanded capacity positions NeoVolta to capture a growing share of the U.S. utility-scale market. This market is projected to exceed 120 GWh of new storage installations by 2030.
Market Opportunities
The partnership targets several high‑growth segments:
- Utility‑scale renewable integration – LFP’s long cycle life supports seasonal storage.
- Commercial & Industrial (C&I) – firms seek demand‑charge reduction and resiliency.
- AI & Data‑Center Load Management – high‑density compute loads benefit from rapid discharge response.
Quotes from Leadership
“This collaboration represents an important milestone in NeoVolta’s expansion into large-scale energy storage and the continued buildout of our U.S. manufacturing platform,” said Ardes Johnson, Chief Executive Officer of NeoVolta. “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. Together, these initiatives reinforce our strategy to build a domestic energy storage platform designed to meet growing demand for reliable, high-performance BESS solutions.”
“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,” said Daejin Choi, Head of ESS 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.”
Technical Overview
- LFP Pouch‑Cell Technology – Offers >3,500 cycle life, high thermal stability, and no cobalt. SK On’s cells certify to 4.2 V nominal voltage, enabling high‑energy BESS modules.
- Integration Process – NeoVolta’s automated pack‑assembly line welds cells into 500 kWh modules, adds smart‑BMS (battery management system) and integrates with its proprietary NeoVOLT™ energy‑management software.
- Second Production Line – Designed for rapid change‑over, allowing NeoVolta to switch between 400 kWh and 2 MWh pack formats without downtime.
Future Outlook
- Delivery Timeline – First SK On LFP cell shipments arrive Q2 2027, with full‑scale deliveries ramping to 9 GWh/yr by 2028.
- Pack Production – Energy storage pack purchases begin Q4 2027, aligning with NeoVolta’s projected 2029‑2030 market surge.
- Potential Expansion – Both parties retain rights to increase volumes up to 24 GWh should U.S. policy incentives expand.
- Competitive Positioning – The partnership gives NeoVolta a cost‑advantage versus rivals relying on imported cells, and it strengthens SK On’s foothold in the fast‑growing U.S. battery manufacturing segment.
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Energy Market Analyst specializing in global energy markets, pricing trends, market intelligence, and the transition toward cleaner energy systems. Passionate about analyzing data, identifying emerging opportunities, and turning complex market developments into actionable insights for businesses and investors.
