Summary
- The US electric vehicle market is growing as automakers are encouraged to source batteries locally
- Policies like the Inflation Reduction Act have led to battery factory announcements and investments
- SK On and Nissan have announced a battery supply agreement for Nissan in North America
- The high-performance batteries produced in the US will be used in a new generation of Nissan EVs
- The partnership between SK On and Nissan is expected to create 1,700 jobs and invest $661 million in the US
Article
The electric vehicle market is experiencing growth worldwide, with a particular focus on obtaining batteries locally in each market. China has been dominating the EV battery industry, prompting other markets to encourage local production. In the USA, significant subsidies were provided under the Inflation Reduction Act to boost battery factory announcements and investments. Consumer subsidies were tied to using batteries produced locally rather than imported from China. With the change in political leadership, there is a new emphasis on encouraging local battery production rather than relying on imports. This has led to a recent agreement between Nissan and SK On for the supply of almost 100 GWh of batteries from 2028–2033, all produced in the US.
SK On, a South Korean firm, has entered into its first collaboration with a Japanese automaker, Nissan. The agreement includes the supply of high-performance batteries for Nissan’s next generation of EVs, not including the LEAF and Ariya models. These EVs will be produced in the US, specifically at Nissan’s plant in Canton, Mississippi. Christian Meunier, Chairman of Nissan Americas, views the partnership with SK On as a significant milestone in Nissan’s electrification journey and supports further investment in US manufacturing. SK On is expected to create 1,700 jobs and invest $661 million in the partnership, while also expanding its battery production capacity in the US.
SK On currently operates two battery factories in the US and is planning to build four more battery factories with partners in the States. Once all factories are operational, SK On’s annual battery production capacity in the US is expected to reach 180 GWh. With potential future partnerships, this capacity could further increase. SK On is among the largest battery producers globally, with competitors such as China’s CATL, BYD, LG Energy Solution, Samsung SDI, and Panasonic. The partnership between Nissan and SK On reflects the ongoing growth of the EV revolution, even reaching states like Mississippi.
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Overall, the collaboration between Nissan and SK On highlights the increasing importance of local battery production in the electric vehicle industry. As the market continues to grow and evolve, partnerships between automakers and battery manufacturers play a crucial role in accelerating the adoption of EVs. The investment in US manufacturing and the creation of jobs through this partnership demonstrate the positive impact of transitioning towards sustainable transport solutions. With ongoing developments in battery technology and production capabilities, the EV revolution is set to make further strides in the coming years, paving the way for a cleaner and more sustainable transportation future.
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