# SK On battery technology and market expansion

> Live situation record from CLSTR: https://clstr.news/situations/sk-on-battery-technology-and-market-expansion
> Updated: 2026-08-30T23:58:27.000Z. Sources: 15. Developments: 2.

South Korean battery manufacturer SK On is expanding its technological scope and market reach through new partnerships. Initially, the company entered a non-binding collaboration with the American firm Factorial to research mass-production methods for solid-state batteries. This partnership focuses on determining if existing lithium-ion production lines can be retrofitted to manufacture Factorial’s FEST cells, a move that could potentially reduce required initial investments by approximately 80 percent.

SK On has further solidified its presence in the energy storage system (ESS) market by signing a long-term agreement with U.S.-based manufacturer NeoVolta Power. The contract involves supplying 9 gigawatt-hours (GWh) of lithium iron phosphate (LFP) pouch-type battery cells between 2027 and 2031, with production centered at SK On’s facility in Georgia, USA. Industry estimates value this deal at approximately 1.5 trillion won.

The companies are currently discussing a potential expansion through a separate “tolling arrangement.” In this scenario, SK On would provide cells for NeoVolta Power to assemble into packs, which SK On would then repurchase, potentially increasing the total cooperation volume to 18GWh. This strategic shift toward LFP technology is driven by demand from grid renewal projects and AI data centers. To support its global ESS order target of over 20GWh, SK On is repurposing production lines in Seosan, South Korea, and Georgia to accommodate LFP production.

## Claims

- SK On signed a contract to supply 9GWh of lithium iron phosphate (LFP) battery cells to NeoVolta Power. (corroborated by 6 sources)
- The supply period for the 9GWh of battery cells is set for five years, from 2027 to 2031. (corroborated by 5 sources)
- The battery cells will be manufactured at SK On's facility located in Georgia, USA. (corroborated by 5 sources)
- SK On plans to pursue a separate agreement for an additional 9GWh of LFP cells, potentially bringing total cooperation to 18GWh. (corroborated by 5 sources)
- The contract value is estimated to be approximately 1.5 trillion won (about $1.09 billion). (corroborated by 3 sources)
- SK On has set a global target to secure more than 20GWh of energy storage system (ESS) orders this year. (corroborated by 2 sources)
- In South Korea, SK On secured 284MW of the 565MW available in the second ESS central contract market bidding. (corroborated by 2 sources)
- SK On is converting production lines in Seosan, South Korea, and Georgia, USA, to focus on LFP batteries for ESS. (single source)

## Timeline

### 2026-08-30: SK On signs 9GWh LFP battery supply deal with U.S. NeoVolta Power

SK On signed a 9GWh LFP battery supply deal with U.S. firm NeoVolta Power, estimated at 1.5 trillion won, to expand its energy storage system business in North America.

12 sources. https://clstr.news/cluster/sk-on-signs-9gwh-lfp-battery-supply-deal-with-us-neovolta-power

### 2026-08-28: Factorial and SK On partner to advance solid-state battery production

Factorial and SK On are collaborating to explore retrofitting existing lithium-ion production lines for solid-state battery manufacturing, potentially reducing initial investment costs by 80 percent.

3 sources. https://clstr.news/cluster/factorial-and-sk-on-partner-to-advance-solid-state-battery-production

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Cite as: SK On battery technology and market expansion. CLSTR, https://clstr.news/situations/sk-on-battery-technology-and-market-expansion