Deal Overview
NeoVolta Inc. (NASDAQ:NEOV) announced that its majority‑owned subsidiary, NeoVolta Power, has entered into a strategic supply and manufacturing collaboration with SK On. The five‑year agreement runs from 2027 through 2031.
Supply Commitment
Under the agreement SK On will supply 9 GWh of U.S.-manufactured lithium‑iron‑phosphate (LFP) battery cells to NeoVolta Power each year for the period 2027‑2031. In addition, SK On will purchase an equivalent 9 GWh of energy‑storage packs that NeoVolta Power will manufacture, bringing the total collaboration volume to 18 GWh over the five‑year term.
Manufacturing Expansion
The collaboration designates SK On as the primary cell supplier for NeoVolta Power’s LFP pouch‑cell‑based battery energy storage system (BESS) products. NeoVolta Power will use its domestic manufacturing capabilities to produce the energy‑storage packs for SK On. The company plans to expand its Pendergrass, Georgia facility from a single production line to a two‑line platform capable of up to 8 GWh of annual BESS production capacity by 2028, with the initial line proceeding through commissioning and ramp‑up as scheduled.
Market Impact
Following the announcement, NeoVolta’s shares surged 24% on Monday, reflecting investor optimism about the large‑scale supply arrangement and the company’s U.S. manufacturing build‑out.
Executive Comment
Ardes Johnson, Chief Executive Officer of NeoVolta, said the collaboration “represents an important milestone in NeoVolta’s expansion into large‑scale energy storage and the continued buildout of our U.S. manufacturing platform.”