NeoVolta Inc. (NASDAQ: NEOV) announced it has increased its ownership interest in NeoVolta Power, LLC from 60% to 80%. The manufacturing joint venture operates a battery energy storage system facility in Pendergrass, Georgia.

The remaining 20% ownership interest continues to be held by CCC, a U.S. subsidiary of PotisEdge. NeoVolta maintains full board and operational control of NeoVolta Power under the revised structure, according to the company's statement.

The transaction requires no new cash capital deployment by NeoVolta. The company stated the updated structure increases its economic participation while supporting alignment with domestic manufacturing and incentive frameworks.

NeoVolta has entered into a sales, marketing, and business development agreement with PotisEdge in connection with the ownership change. The company agreed to issue approximately 1.2 million shares of common stock as consideration under the related agreements.

"Increasing our ownership in NeoVolta Power strengthens our long-term economic interest in the platform while preserving operational control," said Ardes Johnson, Chief Executive Officer of NeoVolta.

The company indicated the ownership structure change may simplify eligibility for IRS Section 45X Advanced Manufacturing Production Tax Credits and Section 48E Investment Tax Credits. NeoVolta will continue to consolidate NeoVolta Power's financial results under U.S. GAAP.

Under the expanded commercial agreement, PotisEdge will contribute experience and commercial insight to support NeoVolta Power's business development efforts. NeoVolta is also building internal sales and marketing capabilities to complement the arrangement.