SK On said on Monday it had signed a five-year deal to supply NeoVolta Power with lithium iron phosphate cells for energy storage from 2027, from its Georgia plant. It did not disclose the value; industry estimates put it at about 1.09 billion dollars. A second 9 GWh agreement would take cooperation to 18 GWh. The storage push follows weaker electric-vehicle demand. South Korean industrial production was unchanged in July, car production fell 4.5 per cent and manufacturing rose 0.2 per cent.
The South Korean battery maker said on Monday it had signed a five-year deal to supply NeoVolta Power of the United States with lithium iron phosphate cells for energy storage systems from 2027. The cells will come from its plant in the US state of Georgia. SK On did not disclose the value; industry estimates put it at about 1.09 billion dollars. The pouch-type cells will come from that Georgia factory.[1]
The company said it plans a second agreement later this year for a further 9 GWh, which would take cooperation between the two firms to 18 GWh, with NeoVolta Power assembling the packs. SK On set a target of more than 20 GWh of global storage orders this year and said it is in talks with several US customers over additional supply totalling more than 10 GWh. The push into storage follows weaker electric-vehicle demand; LG Energy Solution and Samsung SDI are also converting vehicle-battery lines as US subsidies for electric cars are phased out.[1]
Industrial production was unchanged from June. Manufacturing output rose 0.2 per cent, car production fell 4.5 per cent, and retail sales, the gauge of consumer spending, dropped 2.4 per cent. Facility investment rose 7.5 per cent over the same month, the only one of the three headline measures to gain. The car industry's 4.5 per cent decline sits against a manufacturing sector that grew 0.2 per cent, so the drag is concentrated rather than general.[2]
