NeoVolta Inc.'s stock climbed sharply after its majority-owned subsidiary, NeoVolta Power, announced a strategic supply and manufacturing collaboration with SK On. The arrangement secures a five-year supply of U.S.-manufactured lithium iron phosphate (LFP) pouch cells and creates reciprocal manufacturing commitments between the two companies.
Under terms of the agreement, SK On has committed to deliver 9 gigawatt-hours (GWh) of LFP cells for NeoVolta Power's Pendergrass, Georgia plant covering the period from 2027 through 2031. The collaboration also includes a framework that would have SK On supplying an additional 9 GWh of cells while purchasing energy storage packs produced by NeoVolta Power during the same time frame, bringing the total potential collaboration to 18 GWh.
As the primary cell supplier under the five-year contract, SK On will provide LFP pouch cells for NeoVolta Power's battery energy storage system (BESS) products. NeoVolta Power, in turn, will use its domestic manufacturing capabilities to assemble energy storage packs that SK On may purchase under the framework.
Strategic and operational implications
The partnership is described as a material step in NeoVolta's push into large-scale energy storage and the expansion of its U.S. manufacturing footprint. Company management said the collaboration is expected to support an increase in manufacturing capacity at the Pendergrass site from a single production line to a two-line platform. The target for the expanded facility is up to 8 GWh of annual BESS production capacity by 2028. NeoVolta Power's initial production line is reported to be progressing on schedule through commissioning and production-ramp activities.
NeoVolta Power's Pendergrass facility is purpose-built to produce BESS products aimed at commercial, industrial and utility-scale customers. The agreement with SK On positions the company to integrate U.S.-manufactured LFP cells with domestic system assembly as demand rises across utility, commercial, industrial and AI data-center markets.
Executive comment
"This collaboration represents an important milestone in NeoVolta's expansion into large-scale energy storage and the continued buildout of our U.S. manufacturing platform," the company's chief executive said.
Contextual note - The arrangement ties long-term cell supply to in-country manufacturing of energy storage packs, aligning cell supply with NeoVolta Power's planned capacity growth and market focus on larger-scale BESS deployments.