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Choi Dae-jin, head of the ESS Business Division at SK On (right), and Steve Bond, president of Neovolt Power, pose for a commemorative photo after signing an ESS battery cell supply contract at SK On Gwanhun Campus in Jongno-gu, Seoul, on the 27th. / SK On

SK On will supply 9GWh of lithium iron phosphate (LFP) battery cells to U.S. energy storage system company Neovolt Power for five years starting in 2027.

SK On announced on the 31st that it signed an ESS battery cell supply contract with Neovolt Power at the SK On Gwanhun Campus in Jongno-gu, Seoul, on the 27th.

Key officials from both companies, including Choi Dae-jin, head of the ESS Business Division at SK On, and Steve Bond, president of Neovolt Power, attended the signing ceremony that day.

Under the contract, SK On will supply a total of 9 gigawatt-hours (GWh) of LFP pouch battery cells to Neovolt Power over five years from 2027 to 2031. The supplied volume is scheduled to be produced at SK On's U.S. Georgia plant.

With this order, SK On has secured a long-term supply source for LFP batteries for North American ESS.

It has been recognized for its technological competitiveness and local U.S. production capabilities after being selected as the core cell supplier for Neovolt Power's upcoming LFP pouch battery-based ESS products.

SK On plans to pursue a strategic partnership through a separate contract within the year to provide an additional 9GWh of ESS LFP battery cells to Neovolt Power under a customer-supplied material structure, with Neovolt Power purchasing them as pack products in which it holds expertise. The scale of business cooperation between the two companies is expected to expand to a total of 18GWh.

Choi Dae-jin, head of the ESS Business Division at SK On, said, "This contract will serve as an opportunity to further strengthen SK On's position in the U.S. ESS market," adding, "Based on local production capabilities and battery solutions tailored to customer demand, we will continue to expand new customers and business opportunities."

Steve Bond, president of Neovolt Power, stated, "SK On's battery technology and U.S. production capabilities, alongside Neovolt Power's ESS manufacturing capabilities, form the foundation of this strategic cooperation," adding, "We expect that this cooperation will allow us to effectively respond to growing demand within the U.S. and accelerate the expansion of both companies' ESS businesses."

                                                                                                               Kim A-yun