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SK Innovation Shares Jump Over 6% on Major US Battery Deal for SK On
Shares of South Korean energy and chemicals firm SK Innovation Co. (096770.KS) surged more than 6% on Monday after its battery-making subsidiary, SK On, announced a significant supply agreement with U.S.-based NeoVolta Power.
SK On Secures Long-Term Supply Deal
SK On has committed to supplying NeoVolta Power with lithium iron phosphate (LFP) battery cells over a five-year period, beginning in 2027. The agreement covers a total supply of 9 gigawatt-hours (GWh) of battery cells.
While the companies did not officially disclose the financial terms, South Korean media reports, cited by Investing.com, estimated the deal's value at approximately ₩1.5 trillion ($1.09 billion). SK On also indicated that it plans to expand its partnership with NeoVolta through a separate agreement to be announced later this year.
AdMarket Reaction
The news was met with strong investor enthusiasm, sending SK Innovation's stock up 6.1% to close at ₩124,000 per share. The rally was particularly notable as it came on a day when South Korea's benchmark KOSPI index fell 2.7%.
For investors, the deal signals a significant long-term revenue stream for SK On and validates its position in the competitive global battery market. The agreement underscores growing demand for LFP battery technology, which is increasingly used in energy storage systems and electric vehicles.
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