NeoVolta and SK On Sign 9 GWh U.S. Battery Supply Deal, Outline 18 GWh Collaboration
NeoVolta Power has signed a five-year agreement for 9 GWh of U.S.-manufactured SK On LFP cells and outlined a broader manufacturing relationship that could bring total activity between the companies to 18 GWh through 2031.
Microgrid Media Editorial Desk
Published · 4 min read
NeoVolta announced August 31 that its majority-owned NeoVolta Power subsidiary has signed the NeoVolta SK On battery supply deal, a five-year agreement under which SK On will provide 9 GWh of U.S.-manufactured lithium iron phosphate battery cells from 2027 through 2031. The agreement matters because it secures a domestic cell supply for NeoVolta’s expanding battery energy storage manufacturing operation in Pendergrass, Georgia.
The companies also outlined a broader framework involving another 9 GWh of LFP cells that NeoVolta Power would incorporate into energy storage packs manufactured for purchase by SK On, potentially bringing total activity between the companies to 18 GWh through 2031. NeoVolta said the relationship could support expansion of its Pendergrass operation to as much as 8 GWh of annual BESS production capacity in 2028.
The signed agreement covers the first 9 GWh
Under the NeoVolta announcement, SK On becomes the primary cell supplier for NeoVolta Power’s pouch-cell LFP energy storage products.
The first 9 GWh is covered by a signed five-year cell-supply agreement. The additional 9 GWh is described separately as part of a broader manufacturing framework under which SK On would supply cells, NeoVolta Power would assemble them into battery energy storage packs and SK On would purchase those packs.
That distinction is important because the headline 18 GWh figure should not be interpreted as 18 GWh of identical firm purchase orders already contracted under the same agreement.
Reuters separately reported that the initial supply agreement covers 9 GWh over five years and cited industry estimates valuing it at approximately 1.5 trillion won, or about $1.09 billion.
The cells will feed a Georgia BESS manufacturing platform
NeoVolta Power’s manufacturing operation is located in Pendergrass, Georgia, along the Interstate 85 industrial corridor. Its manufacturing platform is designed to assemble battery packs and integrate DC battery containers for utility-scale and commercial and industrial storage applications.
The facility initially targets 2 GWh of annual production capacity. NeoVolta now says the SK On relationship could support adding another production line and scaling toward 8 GWh annually by 2028.
The company said commissioning and production-ramp work is continuing at the initial Pendergrass line, so the higher 8 GWh figure remains a future capacity target rather than current operating output.
LFP cells are expanding beyond electric vehicles
SK On is best known as an electric-vehicle battery manufacturer, but the company is increasing its exposure to stationary energy storage as battery makers look toward fast-growing grid, commercial and data-center demand.
The cells supplied under the agreement will use lithium iron phosphate chemistry, which has become increasingly common in stationary storage because of its cycle-life, thermal and cost characteristics.
Independent industry publication Solar Power World also reported the NeoVolta-SK On agreement and the plan to combine U.S.-made LFP cells with NeoVolta Power’s domestic BESS manufacturing operation.
The partnership arrives as U.S. storage deployment continues to expand rapidly. Microgrid Media previously reported that U.S. battery storage installations reached a record quarterly level, led by utility-scale projects but accompanied by growth in residential storage.
Domestic manufacturing is becoming part of storage procurement
The NeoVolta SK On battery supply deal is also notable for where the cells and packs are intended to be made.
NeoVolta describes the agreement as pairing U.S.-manufactured SK On cells with U.S.-based battery-system assembly. SK Battery America operates a Georgia manufacturing presence, while NeoVolta Power’s facility is in Pendergrass.
Domestic content has become increasingly relevant to developers seeking predictable supply chains and evaluating how equipment sourcing interacts with federal tax incentives, tariffs and procurement requirements.
At the project level, increasing battery deployments are already creating demand for large volumes of cells and integrated systems. Microgrid Media recently covered Ventura County’s completed solar-and-storage installation and a broader U.S. market in which utility-scale batteries account for most new storage capacity.
The 8 GWh production target is not current capacity
NeoVolta’s announcement says its initial Pendergrass line remains in commissioning and production-ramp activities. The proposed two-line configuration targeting up to 8 GWh per year in 2028 therefore depends on future expansion and successful execution.
The broader 9 GWh pack-purchase collaboration also contains forward-looking elements. NeoVolta’s disclosure specifically lists future purchase arrangements, delivery schedules, manufacturing capacity and additional production lines among forward-looking statements.
That means investors and storage customers should distinguish the initial signed cell-supply agreement from the additional manufacturing activity the companies expect to develop.
What happens next
The first material milestone will be NeoVolta Power’s production ramp in Pendergrass, followed by the beginning of SK On cell deliveries in 2027.
If the second production line proceeds, the facility would then move toward the company’s targeted 8 GWh annual manufacturing capacity in 2028.
The longer-term significance of the agreement will depend on how much of the broader 18 GWh framework converts into delivered cells and completed BESS packs, and whether NeoVolta can translate the secured cell supply into utility, commercial, industrial and data-center storage orders.
The Microgrid Media Editorial Desk reports on microgrids, energy storage, grid modernization, data center power demand, distributed energy resources, and energy policy. Reporting published under the Editorial Desk byline is developed from primary regulatory records, utility filings, government documents, company disclosures, and independently verifiable sources, and is reviewed under Microgrid Media’s editorial standards.
Editorial oversight: Jonas Muthoni, Editor-in-Chief
