On August 31, SK On announced that on August 27 it signed a contract with US ESS enterprise NeoVolta Power at the SK On Gwanhun Campus in Jongno-gu, Seoul to supply battery cells for ESS.
Under the contract, SK On will supply a total of 9 GWh of LFP pouch battery cells to NeoVolta Power over the five years from 2027 to 2031. The cells are planned to be produced at SK On's plant in Georgia, US.
In addition, SK On has been selected as the core cell supplier for NeoVolta Power's upcoming LFP pouch battery-based ESS products.
SK On said that through this order, it has successfully secured a long-term supply channel for LFP batteries for ESS in North America, while also expecting to further expand its local client base in the fast-growing US ESS market.
Notably, the two parties also plan to use this contract as an opportunity to comprehensively expand the scope of their cooperation in the ESS field.
SK On plans to sign a separate contract within the year to supply an additional 9 GWh of LFP battery cells for ESS to NeoVolta Power through an outsourced supply model, while also procuring finished products in which it has specialized strengths in the battery pack field, thereby deepening the strategic partnership between the two parties. By then, the total scale of cooperation between the two parties is expected to expand to 18 GWh.
According to public information, NeoVolta Power is an ESS manufacturer headquartered in Pendergrass, Georgia, US, and is a subsidiary of NeoVolta, a well-known US energy technology company.
SK On has also built a solid capacity foundation for ESS business expansion, with a total capacity of approximately 100 GWh in the US, including its wholly-owned plants SK Battery America and SK On Tennessee, as well as HSBMA, its joint venture with Hyundai Motor Group.
Battery Network noted that SK On announced in December 2025 that it had reached an agreement with Ford to terminate their joint venture BlueOval SK, with the two companies to divide the assets.
BlueOval SK was a joint venture established by the two parties in July 2022, through which $11.4 billion was invested to build three power battery plants in Tennessee and Kentucky, US, with a total planned annual capacity of 129 GWh.
Under the agreement reached by the two parties, the production facilities under BlueOval SK will be independently held and operated by each company. Specifically, Ford will wholly own the battery plant in Kentucky, while the battery plant in Tennessee will be wholly owned and operated by SK On.
SK On said at the time that this business adjustment was a strategic restructuring of its asset and capacity layout. After the adjustment, the company can respond more quickly to market changes, accelerate its North American ESS business deployment, and strengthen production efficiency and cost competitiveness in its battery business.
According to the latest installation data released by South Korean research firm SNE Research, global power battery installations totaled 608.5 GWh in H1 2026, up 20% YoY. Among them, SK On's installations were 19 GWh, down 6.7% YoY, due to the pace adjustment of electrification among its North American and European clients, with its market share falling to 3.1% and its ranking dropping to 8th place.
