[Edaily Reporter KIM YOON-JEONG ] SK Innovation(096770)is trading higher in early trading following news that its subsidiary, SK On, has signed a contract to supply batteries for energy storage systems (ESS) in North America.

According to MP Doctor on the 1st, as of 9:37 a.m. today, SK Innovation(096770)is trading at 134,400 won, up 8,500 won (6.77%) from the previous trading day.
The rise in the stock price is believed to be driven by news that SK On has secured a long-term supplier of lithium iron phosphate (LFP) batteries for the North American ESS market.
SK On announced the previous day that it had signed a supply agreement for ESS battery cells with U.S.-based ESS company Neovolta Power. Under the agreement, SK On will supply a total of 9 gigawatt-hours (GWh) of LFP pouch battery cells over a five-year period from 2027 to 2031. Through this contract, SK On has secured a long-term supply source for LFP batteries for the North American ESS market. Industry estimates put the value of the supply contract at around 1.5 trillion won.
Jeon Yu-jin, an analyst at iM Securities, commented on the contract, stating, “While this ESS contract is insufficient to alleviate dissatisfaction and anxiety regarding the support for SK On and SK ie technology (SKIET),” she added, “it is encouraging in that it marks the first step toward entering the U.S. ESS market.”
She continued, “Given that factors such as strong refining margins and lubricant prices in the second half of the year, expectations for SK Group’s investment in AIDC, and the potential for expansion into the U.S. energy sector remain valid, I interpret this as a positive development that somewhat alleviates the disappointment surrounding the SKI–SKIET merger.”