SK On has announced a long-term supply agreement targeting the U.S. energy storage system (ESS) market. On August 31, 2026, SK On said it had signed an agreement with U.S. ESS company NeoVolta Power to supply 9 GWh of LFP pouch-type battery cells. [Official SK Innovation announcement](https://askinno.com/global/archives/156861)
Key Changes
Under the agreement, SK On will supply LFP battery cells for five years, from 2027 through 2031. The cells are expected to be produced at SK On’s manufacturing facility in Georgia, U.S.
SK On is expanding its supply business from its previous focus on high-nickel electric vehicle batteries to LFP-based ESS solutions. The announcement can be viewed as an example of the company expanding its business focus from electric vehicle batteries to batteries for ESS applications.
The confirmed supply agreement covers 9 GWh, with deliveries scheduled from 2027 through 2031.
Current Status
SK On and NeoVolta Power are also pursuing a separate cooperation structure under which an additional 9 GWh of cells would be supplied, while NeoVolta Power would manufacture ESS packs and deliver them to SK On. However, this additional volume is a separate agreement that is planned and under consideration. Therefore, the currently signed 9 GWh agreement should be distinguished from the concept that the overall cooperation could expand to 18 GWh.
| Category | Confirmed Details |
|---|---|
| Contract volume | 9 GWh |
| Supply period | 2027–2031, five years |
| Battery | LFP pouch-type cells |
| Production site | Manufacturing facility in Georgia, U.S. |
| Additional cooperation | 9 GWh under consideration; potential expansion of the total to 18 GWh |
Impact
The order has been reported as close to half of SK On’s target of more than 20 GWh in new orders for the global ESS market this year. Supplying LFP cells for ESS applications using a U.S. manufacturing facility connects the agreement to SK On’s expansion of its ESS business in the United States.
SK On’s total North American production capacity has been reported at approximately 100 GWh, combining SK Battery America, SK On Tennessee, and HSBMA, its joint venture with Hyundai Motor Group. However, the scale of any improvement in SK Innovation’s consolidated results or profitability cannot be determined based on this ESS agreement alone.
SK On has not officially disclosed the contract value. Some media outlets have reported an industry estimate of up to approximately KRW 1.5 trillion, but this is not a confirmed official contract value. [BizWatch report](https://news.bizwatch.co.kr/article/industry/2026/08/31/0014), [Republished Reuters report](https://www.marketscreener.com/news/sk-on-signs-battery-supply-deal-for-energy-storage-system-use-with-neovolta-power-ce7858dcda81ff25), [Seoul Economic Daily report](https://en.sedaily.com/finance/2026/08/31/sk-on-wins-1-billion-ess-battery-order-from-us-neovolta)
Next Checkpoints
There are three key points to monitor:
- Whether actual deliveries begin from the Georgia manufacturing facility in 2027
- Whether the additional 9 GWh cooperation is finalized as a separate agreement
- How the 9 GWh supply is reflected in SK On’s target for new global ESS orders this year
This article was compiled from the official announcement and domestic and international reports verified between 11:50 and 11:53 a.m. on August 31, 2026.