Key Highlights:
- Nissan and SK On have partnered through a new battery supply agreement aimed at enhancing Nissan’s electric vehicle (EV) production in North America, as revealed in a recent press release.
- This $661 million agreement ensures that SK On will provide Nissan with approximately 100 GWh of high-nickel batteries between 2028 and 2033.
- The batteries manufactured in the U.S. will be used at Nissan’s assembly facility located in Canton, Mississippi.
Analysis:
This agreement marks a significant step for Nissan as it aims to expand its electric vehicle manufacturing capabilities in the U.S. The automaker is also seeking new collaborations to speed up the development of its vehicles.
Previously, Nissan allocated $500 million to enhance its EV production at the Canton facility. Starting in 2024, the company has announced plans to introduce 16 new electric models over the next three years, with some production set to begin in Canton in 2028.
This collaboration is notably SK On’s first battery supply deal with a Japanese car manufacturer. The South Korean division of SK Group has also partnered with Ford in producing EV battery materials.
SK On currently operates two battery manufacturing plants in the U.S., with four additional plants being built in collaboration with various partners. Once fully operational, SK On’s U.S. production capacity is projected to exceed 180 GWh.