Nissan became the first Japanese automaker to sign a supply deal with South Korea’s SK On. Under the new agreement, SK On will supply Nissan with nearly 100 GWh of US-made EV batteries, or enough for around 1 million midsize models.
Nissan scores EV batteries from SK On in the US
The new battery supply deal, announced on Wednesday, comes as Nissan prepares to ramp up EV output in North America over the next few years.
SK On will supply 99.4 GWh of batteries from 2028 to 2033, which it estimates is enough to produce around 1 million midsize EVs. The batteries will be used in Nissan’s upcoming electric models built at its Canton, Mississippi plant.
Nissan already invested $500 million in its Canton facility to upgrade it for EV production. The new deal, which includes a $661 million investment, will support around 1,700 jobs at SK On.
The agreement is SK On’s first with a Japanese automaker. The Korean battery giant already has two battery plants in the US, one with Ford and another with Hyundai, with four more on the way. Combined, the company expects to have over 180 GWh annual US production capacity.
The “high-performance, high Nickel batteries” will be used in Nissan’s next-gen EV models. Although Nissan initially planned to begin EV production in Canton this year, it was pushed back until 2028 earlier this year.
Nissan’s initial plans included five new electric models, including a pair of Nissan and Infiniti sedans. The other three were expected to be crossovers and SUVs, including a smaller Rogue-like EV to sit between the LEAF and gas-powered SUV.
Sources told Automotive News report earlier this year that will no longer happen. According to the report, the electric SUV will only be built at its Sunderland, UK plant.
Nissan will launch 30 new vehicles over the next three years, including 16 electrified (EV and hybrid) models. So far, we know one will be the next-gen LEAF, which will be built alongside the electric Juke and Qashqai in Sunderland.
Source: The Korea Times, Nissan
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