SK On to Supply 9 GWh of Batteries to U.S. NeoVolta Power, Expanding North American ESS Business
TECHWORLD ·
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SK On has signed a long-term battery cell supply agreement with U.S. ESS company NeoVolta Power.
Under the agreement, SK On will supply 9 GWh of ESS lithium iron phosphate (LFP) pouch-type battery cells from 2027 to 2031, over five years.
The cells will be produced at SK On's plant in Georgia, U.S., and the two companies are pursuing a plan to expand their cooperation volume to a total of 18 GWh.
SK On has signed a long-term battery cell supply agreement with U.S. ESS company NeoVolta Power, moving to expand its North American ESS business. The deal is part of SK On's push to broaden its ESS business in North America.
Under the agreement, SK On will supply 9 GWh of ESS battery cells. The supply period runs from 2027 to 2031, over five years, and the product will be lithium iron phosphate (LFP) pouch-type battery cells.
The battery cells will be produced at SK On's plant in Georgia, U.S. Through this deal, SK On has secured long-term supply volumes of LFP batteries for ESS use in the United States.
With this agreement, SK On plans to expand its portfolio from high-nickel batteries for electric vehicles to LFP batteries for ESS. It also plans to broaden its local customer base in the United States.
The deal comes as long-term supply agreements are seen as helping raise utilization at U.S. production facilities, with SK On moving to secure stable volumes for five years. SK On expects to make use of its local production capacity and also hopes to improve earnings by diversifying its customer base.
The two companies are also pursuing a plan to expand their total cooperation volume to 18 GWh through this deal. SK On plans to supply NeoVolta Power with an additional 9 GWh of LFP battery cells through a separate agreement within the year, and the additional cooperation would take the form of re-supplying ESS battery packs produced using those cells.
This plan aligns with SK On's strategy to use its production base in the United States to expand its ESS business. SK On has secured about 100 GWh of local production capacity in the U.S. through SK Battery America, SK On Tennessee and HSBMA, and HSBMA is a joint venture plant with Hyundai Motor Group.
Max Choi, head of SK On's ESS business division, said the deal marks an opportunity to strengthen SK On's position in the U.S. ESS market. He added that the company plans to continue expanding new customers and business opportunities based on local production capabilities and battery solutions tailored to customer demand.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406266
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Source: TECHWORLD
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