US battery storage plant secures 9 GWh cell boost to power high-capacity production

NeoVolta Power has secured a five-year supply of US-manufactured lithium iron phosphate battery cells from SK On as it prepares to expand production at its battery storage factory in Pendergrass, Georgia. The agreement with the South Korean battery giant will ensure a long-term supply of premium cells for NeoVolta. Under the agreement, SK On will supply 9 gigawatt-hours of LFP cells between 2027 and 2031. NeoVolta will use the cells to manufacture battery energy storage systems for commercial, industrial, and utility-scale projects, with SK On becoming the primary cell supplier for its pouch-cell LFP products. The companies are also exploring a broader arrangement that could eventually double the collaboration to 18 GWh, although the additional capacity has not yet been finalized. Second production line could lift capacity NeoVolta launched its US battery manufacturing platform in January, with the first production line at its Pendergrass facility designed for 2 GWh of annual output. That line is now undergoing commissioning and production ramp-up. The new SK On supply agreement could support the development of a second production line based on pouch-format LFP cells. If the expansion proceeds as planned, NeoVolta is targeting up to 8 GWh of annual production capacity at the Georgia facility by 2028. “This collaboration represents an important milestone in NeoVolta’s expansion into large-scale energy storage and the continued buildout of our US manufacturing platform,” said NeoVolta CEO Ardes Johnson. “The initial agreement secures long-term access to US-manufactured LFP cells for our Pendergrass production expansion, while the broader collaboration positions NeoVolta Power to manufacture energy storage packs for SK On,” he added. “Together, these initiatives reinforce our strategy to build a domestic energy storage platform designed to meet growing demand for reliable, high-performance BESS solutions,” Ardes said. Partnership could eventually reach 18 GWh The agreement currently guarantees the supply of the first 9 GWh of battery cells, but the companies have also outlined a framework for another 9 GWh. Under that proposed arrangement, SK On would provide additional cells to NeoVolta, which would manufacture them into battery packs. SK On would then purchase those completed packs. If implemented, the second phase would bring the total collaboration to 18 GWh between 2027 and 2031. However, that portion remains dependent on future orders and the companies agreeing on commercial terms. The structure could give NeoVolta another source of manufacturing demand while providing SK On with battery packs assembled in the US. LFP cells target stationary storage market Lithium iron phosphate batteries have become an important option for stationary energy storage because of their long lifespan and thermal stability. They prevent overheating and fires, and the metals used to manufacture them are also less toxic. By using iron and phosphate instead of nickel and cobalt, the LFP batteries solve several issues associated with the battery industry, such as high cost, unethical sourcing, and supply chain bottlenecks. Their comparatively lower energy density is less of a drawback in stationary applications, where the size and weight of the battery system are generally less restrictive than in electric vehicles. Their lower cost and higher safety easily make up for their extra weight and size. NeoVolta’s expansion comes as the company builds its ability to supply larger battery storage projects from its Georgia manufacturing base. By securing cell supply several years in advance, NeoVolta is aiming to support that scale-up while giving its planned second production line a long-term source of US-made LFP cells. Get the latest in engineering, tech, space & science - delivered daily to your inbox.Atharva is a full-time content writer with a post-graduate degree in media & amp; entertainment and a graduate degree in electronics & telecommunications. He has written in the sports and technology domains respectively. In his leisure time, Atharva loves learning about digital marketing and watching soccer matches. His main goal behind joining Interesting Engineering is to learn more about how the recent technological advancements are helping human beings on both societal and individual levels in their daily lives.