NeoVolta and SK On sign 18 GWh BESS supply and pack deal

The five-year collaboration pairs SK On's US-made LFP cells with NeoVolta Power's Georgia factory, targeting 8 GWh annual output by 2028.

By Rowen Brooks Thu, 10 September 2026 AI level 2 of 5

AI level 2 of 5: drafted by our AI editorial assistant from source material our editor chose; fact-checked, edited and signed off by Mark Walker, Editorial Director. What the levels mean

A clean, brightly lit automated manufacturing facility features multiple robotic gantry systems processing modular containers on automated guided vehicles.

NeoVolta Inc. has announced a strategic supply and manufacturing collaboration with South Korean battery maker SK On, covering up to 18 GWh of combined activity between 2027 and 2031. The deal, struck through NeoVolta's majority-owned subsidiary NeoVolta Power, has two components: a signed five-year agreement under which SK On will supply 9 GWh of US-manufactured lithium iron phosphate (LFP) battery cells, and a broader framework under which SK On will supply a further 9 GWh of LFP cells while simultaneously purchasing completed battery energy storage system (BESS) packs manufactured by NeoVolta Power.

NeoVolta Power's production hub is a facility in Pendergrass, Georgia. The company says its initial production line there is progressing through commissioning and ramp activities. The multi-year SK On relationship is expected to support the addition of a second production line oriented around pouch-format LFP cells, with a stated target of up to 8 GWh of annual BESS production capacity by 2028. No financial terms, contracted pack prices, or total deal value were disclosed in the release.

The deal

Ardes Johnson, chief executive of NeoVolta, described the collaboration as securing long-term access to domestically manufactured cells for Pendergrass while positioning NeoVolta Power as a pack manufacturer for SK On. Daejin Choi, head of ESS business at SK On, said the partnership advances SK On's footprint in the US BESS market by combining its LFP cell technology with NeoVolta Power's domestic manufacturing capability.

The structure is notable: SK On functions simultaneously as cell supplier and pack customer, meaning NeoVolta Power will source its core chemistry from SK On and sell finished product back to it. This kind of bilateral arrangement can reduce offtake risk for a smaller manufacturer but also concentrates commercial dependency on a single counterparty.

Market context

LFP chemistry has displaced nickel-manganese-cobalt (NMC) cells in the utility-scale BESS segment over the past several years, driven by lower cost, longer cycle life and improved thermal stability. SK On has historically been more prominent in the NMC electric-vehicle battery market; its push into LFP and US-based energy storage supply reflects a broader industry pivot as utility and grid-scale storage demand accelerates.

For a small-cap NASDAQ company such as NeoVolta, securing a named tier-one cell supplier and a back-to-back pack offtake from the same counterparty materially de-risks the Pendergrass ramp. The US domestic BESS manufacturing market is crowded with developers seeking to qualify for incentives under the Inflation Reduction Act's investment tax credit and, for qualifying domestic-content product, the bonus adder that rewards US-manufactured components. NeoVolta's press release explicitly references domestic-content positioning and flags the potential applicability of tax credits, though it does not confirm which credits apply or at what rate.

Policy and supply-chain read-across

The domestic-supply-chain framing is deliberate. The IRA's domestic-content bonus adder, which can add up to ten percentage points to the base investment tax credit for qualifying storage projects, creates a direct commercial incentive to pair US-made cells with US-based assembly. Tariff exposure on imported battery components has also sharpened developer appetite for onshore supply chains, and several cell manufacturers have accelerated US gigafactory timelines as a result.

The broader BESS market context favours scale: grid operators across PJM, ERCOT and the Western Interconnection are procuring firm capacity and ancillary services, while AI data-centre operators are seeking behind-the-meter storage to manage peak demand and resilience. NeoVolta's release cites all three end-markets. Investors will want to see finalised commercial terms, confirmed tax-credit eligibility, and commissioning progress at Pendergrass as the near-term milestones to watch.