NeoVolta secures 9 GWh battery cell deal

US battery storage company NeoVolta Power has secured a five-year supply of battery cells from South Korea's SK On. The deal covers 9 gigawatt-hours of lithium iron phosphate cells, with shipments scheduled from 2027 through 2031.

These cells will be used at NeoVolta's factory in Pendergrass, Georgia. There, they will be assembled into battery energy storage systems intended for commercial, industrial, and utility-scale projects. SK On will become the primary cell supplier for NeoVolta's LFP pouch-cell storage products.

The Supply Agreement Details

The signed contract is firm for the initial 9 GWh. However, the companies have also outlined a potential second phase. This framework would involve SK On supplying an additional 9 GWh of cells. NeoVolta would then manufacture these into battery packs, which SK On would purchase.

If this second part proceeds, the total collaboration could reach 18 GWh between 2027 and 2031. The additional 9 GWh is not yet guaranteed, as it depends on future orders and commercial terms.

NeoVolta CEO Ardes Johnson called the collaboration "an important milestone in NeoVolta’s expansion into large-scale energy storage." He stated that the initial agreement secures long-term access to US-manufactured LFP cells for the company's Pendergrass production expansion.

Strategic Expansion in Georgia

NeoVolta launched its US battery manufacturing platform in January. At that time, the company said the Pendergrass plant's first production line was designed for an annual output of 2 GWh. The facility was built with room to scale up to 8 GWh per year.

That first line is currently in the commissioning and ramp-up phase. According to NeoVolta, the new deal with SK On could support the construction of a second production line. This line would be built around pouch-format LFP cells. The company aims to bring the factory's total annual production capacity to up to 8 GWh by 2028.

The Case for LFP in Stationary Storage

Lithium iron phosphate batteries are considered well-suited for stationary energy storage applications. They typically offer a long cycle life and strong thermal stability. A key advantage is that they do not use nickel or cobalt.

While LFP cells are not as energy-dense as some other lithium-ion chemistries, this is less critical for stationary storage. Weight and size constraints are far less significant than in mobile applications like electric vehicles, allowing for larger battery systems.

The broader collaboration framework positions NeoVolta Power to manufacture energy storage packs for SK On. Johnson said these initiatives reinforce the company's strategy to build a domestic energy storage platform designed to meet growing demand for reliable, high-performance battery energy storage system solutions.