Five years of cells and no company price
SK On 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 volume on the contract is 9 GWh. SK On did not disclose the value; industry estimates put it at about 1.09 billion dollars. Walk me from those gigawatt-hours to cash: the only dollars on the page are someone else's estimate.[1]
SK On said the pouch-type cells will come from its factory in Georgia, with NeoVolta Power assembling the packs. That is the split the company put on the page: cells in Georgia, packs at NeoVolta Power.[1]
This year's 20 GWh sits on other volume
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 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.[1]
The 9 GWh on the signed deal starts in 2027, so it does not fill a storage-order target set for this year. The 20 GWh therefore has to come from other volume, including talks totalling more than 10 GWh that are not yet contracts. The further 9 GWh is still a plan.[1]
Vehicle-battery lines converted as subsidies fade
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. If SK On later this year signs the further 9 GWh agreement it said it plans, cooperation with NeoVolta Power reaches 18 GWh; the signal to watch is whether that second volume is disclosed as a signed agreement.[1]