SK On获NeoVolta 9GWh美国ESS用LFP电池长期订单，NeoVolta已大涨反映

SK On has won a 1.5 trillion won ($1 billion) order to supply energy storage system (ESS) batteries in the United States. The 9 gigawatt-hour (GWh) deal, the company's first overseas order this year, accounts for nearly half of its 20 GWh target. SK On, which has trailed LG Energy Solution and Samsung SDI in ESS orders, plans to accelerate its North American ESS business on the back of the contract.
SK On said on the 31st that it had signed a deal to supply lithium iron phosphate (LFP) batteries for ESS use to NeoVolta Power of the United States. Under the contract, SK On will supply 9 GWh of LFP pouch battery cells from next year through 2031. The batteries will be produced at the company's plant in Georgia. The deal is valued at about 1.5 trillion won.
SK On is pursuing an additional 9 GWh contract with NeoVolta Power this year. Under the structure being discussed, SK On would supply batteries to NeoVolta Power, which would assemble them into ESS battery pack products and sell them back to SK On. SK On would then supply those products to other customers.
If the deal is completed, the two companies' business cooperation would grow to 18 GWh. SK On said the additional 9 GWh would not be reflected in revenue because of the buy-back structure. "This contract will serve as an opportunity to further strengthen SK On's position in the U.S. ESS market," said Choi Dae-jin, head of SK On's ESS business division. "Based on our local production capabilities and battery solutions tailored to customer demand, we will continue to expand new customers and business opportunities."
The order is expected to secure a stable long-term buyer and lift utilization rates at SK On's U.S. plants. The company had targeted 20 GWh in new orders in the global ESS market this year but had not secured any new overseas orders until now. SK On is building a total of 100 GWh in production capacity in North America, including its wholly owned SK Battery America and SK On Tennessee plants and HSBMA, a joint venture with Hyundai Motor Group.
The prospects for further orders are strong. SK On is continuing talks on additional supply with Flatiron, with which it signed a 1 GWh contract for ESS-use LFP batteries last September. At the time, SK On secured priority negotiating rights to supply a 6.2 GWh energy development project.
SK On is also pushing to expand in the domestic ESS market, winning 284 megawatts, or half of the total 565 MW, in the second ESS central contract market auction. The company plans to convert 3 GWh of the 7 GWh of lines at its Seosan plant in Chungcheongnam-do to ESS-use LFP battery production, with full output scheduled to begin in the first half of next year.
Battery makers are accelerating the conversion of existing battery production facilities for ESS use to counter slowing electric vehicle demand. LG Energy Solution (373220) has completed the build-out of five ESS hubs in North America, while Samsung SDI (006400) will begin operating a prismatic LFP line for ESS use in October.