NeoVolta Power has secured a commitment from SK On to supply U.S.-manufactured battery cells for five years, supporting the expansion of its energy storage systems plant in the city of Bandergras, Georgia. The signed agreement provides for the supply of 9 gigawatt-hours of lithium iron phosphate (LFP) cells during the period from 2027 to 2031.
The cells will be shipped to NeoVolta’s plant, where they will be assembled into energy storage systems intended for commercial and industrial projects and utility-scale projects. Under the agreement, SK On becomes the primary supplier of pouch-type LFP cells used in NeoVolta’s energy storage products.
One Confirmed Phase and Another Yet to Be Finalized
The collaboration consists of two parts, but only the first part has become binding so far. The signed commitment covers 9 gigawatt-hours of cells. The proposed framework for the second part includes the supply of an additional 9 gigawatt-hours to NeoVolta, which will convert them into battery packs, with SK On subsequently purchasing those packs.
If the second phase proceeds, the total volume of the collaboration will reach 18 gigawatt-hours between 2027 and 2031. However, this additional quantity is not guaranteed, as it depends on future orders and agreement on commercial terms. Therefore, it should not currently be treated as confirmed supply capacity.
What Changes in Practice?
NeoVolta launched its U.S. battery manufacturing platform in January and said at the time that the first production line at the Bandergras plant was designed to produce 2 gigawatt-hours annually of energy storage systems, with the possibility of expanding to 8 gigawatt-hours annually. The first line is currently undergoing commissioning and production ramp-up.
According to the company, the SK On agreement could support the creation of a second production line based on pouch-type LFP cells, raising the plant’s targeted annual capacity to 8 gigawatt-hours by 2028. These figures remain operational targets linked to the success of the expansion and production ramp-up, and do not demonstrate that the targeted capacity has already been achieved.
Why Does This News Matter?
The importance of the agreement lies in linking the expansion of a U.S. energy storage plant to defined, time-limited domestic supplies, rather than merely issuing a general statement of intent. It also gives NeoVolta a primary supplier of LFP cells, a chemistry widely used in stationary storage because of its long service life and strong thermal stability, as well as its lack of reliance on nickel or cobalt.
In contrast, LFP cells have lower energy density than some other lithium-ion battery chemistries. This limitation is less significant in stationary storage, where mass and volume are generally not as decisive as they are in vehicles. The remaining open questions concern NeoVolta’s ability to operate the first line, finance and build the second line, and convert the framework for the additional collaboration into binding orders and commercial terms.