Key Takeaways
- SK On will supply nearly 100 GWh of high-nickel batteries to Nissan from 2028 to 2033.
- The partnership is expected to create approximately 1,700 jobs in the US with a total investment of $661 million from SK On.
- Nissan plans to introduce 16 new electrified vehicle models over the next three years, starting production in 2028.
New Supply Agreement for EV Batteries
SK On, a leading global battery manufacturer, and Nissan have forged a supply agreement that will significantly boost Nissan’s electric vehicle (EV) production in North America. This collaboration is set to commence in 2028 and will run until 2033, during which SK On will provide around 100 GWh of high-nickel batteries specifically for Nissan’s next-generation EVs. The batteries will be manufactured in the US and used in vehicles produced at Nissan’s Canton, Mississippi assembly plant.
The arrangement is part of a broader push to enhance local manufacturing capabilities, with the investment totaling $661 million from SK On, including funds earmarked for equipment purchases. Additionally, Nissan will invest $500 million in its Canton facility to bolster EV production. This initiative is expected to create roughly 1,700 jobs at SK On, marking a significant step in strengthening job opportunities in the region.
This agreement is noteworthy as it represents SK On’s first venture supplying batteries to a Japanese automaker. The company, which is a subsidiary of South Korea’s SK Group, currently operates two battery plants in the US and is in the process of building four more in collaboration with various partners. Once all plants are fully operational, SK On’s annual production capacity in the US is projected to exceed 180 GWh, significantly contributing to the growing demand for EV batteries.
Seok-hee Lee, President and CEO of SK On, emphasized that the partnership showcases the robustness of SK On’s battery technology and its expanding footprint in the North American market. He stated, “Leveraging our production footprint and expertise, we are committed to supporting Nissan’s electrification strategy.”
Nissan is gearing up to introduce 16 new electrified vehicle models over the coming three years, with production slated to start in 2028 at the Canton assembly plant. Christian Meunier, Chairman of Nissan Americas, highlighted the agreement as a key milestone in Nissan’s electrification journey, fostering further investment in US manufacturing capabilities. Meunier remarked, “Through this smart partnership with SK On, we can leverage their growing US production capacity to deliver innovative, high-quality electric vehicles.”
In summary, the strategic partnership between SK On and Nissan not only strengthens the production pipeline for EVs but also signifies a commitment to job creation and local manufacturing, aligning with broader industry trends towards electrification.
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