SK On wins $1.1 bil. ESS battery deal in US

SK On, the battery-making unit of Korea’s SK Innovation, said Monday it has signed a long-term deal to supply battery cells for energy storage systems (ESS) to U.S. company NeoVolta Power. Under the five-year deal, SK On will supply a total of 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch cells from 2027 to 2031. The batteries will be produced at SK On’s plant in Georgia. The companies did not disclose the value of the deal, but market estimates put it at about 1.5 trillion won ($1.09 billion). The deal is expected to help SK On secure a stable customer for its ESS batteries in the United States and increase production at its local facilities. SK On has been expanding into the ESS market as demand for EV batteries has slowed. The company has mainly focused on high-nickel EV batteries but is now adding LFP batteries, which are widely used in ESS due to their lower cost and longer life. NeoVolta Power selected SK On as a key battery supplier, citing the Korean firm’s battery technology and U.S. production capabilities. The two companies also plan to expand their partners