SK On has entered into an agreement to supply electric vehicle batteries to Japanese automaker Nissan. This marks the first time SK On has secured a Japanese automaker as a client, accelerating its customer diversification efforts.
On the 19th, SK On announced it has signed a battery supply contract with Nissan. According to the agreement, SK On will supply a total of 99.4 gigawatt-hours (GWh) of batteries to Nissan from 2028 to 2033, over a period of six years. This amount is sufficient for about 1 million mid-size electric vehicles.
The batteries supplied by SK On will be high-performance, high-nickel pouch cells, and production is planned to take place in North America.
These batteries will be used in four next-generation electric vehicle models to be produced at Nissan’s Canton factory in Mississippi for the North American market. This proves once again the demand for high-energy-density, high-nickel batteries in the U.S. market, where range per charge is becoming increasingly important.
This contract is significant not only because it represents SK On’s first partnership with a Japanese automaker but also because it expands its supply base in North America, a region on which the company is strategically focused.
SK On is currently operating its own plant in Georgia, USA, with an annual production capacity of 22 GWh. Additionally, it is constructing a total of four new plants in partnership with clients in Georgia, Kentucky, and Tennessee.
Once all these plants are completed and operating at full capacity, SK On’s battery production capacity in the U.S. will exceed 180 GWh.
For Nissan, securing a stable battery supplier is expected to accelerate its electrification efforts.
Nissan, alongside Toyota and Honda, is one of Japan's top three automakers and is part of the Renault-Nissan-Mitsubishi Alliance, ranking fourth globally in vehicle sales as of 2024. Known as a pioneer in electric vehicles (EVs), Nissan launched the world’s first mass-produced EV, the Leaf, in 2010.
Last year, Nissan announced plans to launch 30 new models worldwide over the next three years, 16 of which will be electric, indicating its commitment to electrification. Nissan also revealed plans to produce four electric models, including two SUVs and two sedans, in the U.S. starting in 2028.
"This agreement is a significant milestone in Nissan's electrification journey in North America and a testament to our commitment to investing in the U.S," said Christian Meunier, President of Nissan Americas. "Using SK On’s local battery production capabilities, we can provide innovative, high-quality EVs that meet customer demands."
"It's meaningful that SK On's superior battery technology and competitiveness have been recognized once again," said Lee Seok-hee, CEO of SK On. "We will actively utilize our production capacity and expertise in the key North American market to support the successful EV transition of our electrification partners."
