Summary
- SK On will supply nearly 100 gigawatt-hours of batteries to Nissan for U.S.-made electric vehicles from 2028 to 2033
- The deal will support 1,700 U.S. jobs at SK On and involves a $661 million investment, with Nissan spending $500 million to ready the Mississippi plant for EV production
- Nissan’s Mississippi plant will build at least four EV models, including both Nissan and Infiniti brands
- The agreement marks the first supply deal between SK On and a Japanese automaker, with Nissan emphasizing localized production with battery manufacturing near vehicle assembly
- Nissan plans to launch 30 new models globally over the next three years, including 16 electrified models and a Nissan Rogue hybrid featuring e-Power hybrid system in the U.S.
Article
SK On and Nissan have announced an agreement in which SK On will supply nearly 100 gigawatt-hours of batteries to Nissan from 2028 to 2033 for U.S.-made electric vehicles. These batteries will be used in EVs produced at Nissan’s Canton, Mississippi, assembly plant starting in 2028. The deal will support 1,700 U.S. jobs at SK On and involves a $661 million investment from the company. Nissan is also spending $500 million to prepare the plant for EV production, making the total investment over $1 billion.
This partnership between SK On and Nissan is an indication that Nissan is close to beginning EV production in Canton after facing multiple delays. Initially planned for 2025, the start of EV production at the Mississippi plant was pushed back to 2027 and then to 2028. Currently, the plant produces gasoline vehicles such as the Altima sedan and Frontier pickup truck. SK On already operates two battery plants in the U.S. and is in the process of building four more under partnerships. This supply agreement marks the first collaboration between SK On and a Japanese automaker, highlighting the growing importance of battery manufacturing for electric vehicles.
Nissan’s decision to localize production by manufacturing batteries near the vehicle assembly plant aligns with its Ambition 2030 strategy revealed in 2021. The threat of tariffs has added urgency to this strategy, with other automakers like Honda seeking U.S. battery supply deals in response. Despite delays and uncertainty, Nissan is moving forward with ambitious product plans, including the launch of 30 new models globally over the next three years, with 16 of them being electrified models. Additionally, Nissan plans to introduce a Nissan Rogue hybrid that will feature the company’s e-Power hybrid system in the U.S., as well as a next-generation Leaf.
The partnership between SK On and Nissan signifies a significant step towards expanding EV production in the U.S. and creating more job opportunities in the sector. By investing in battery manufacturing and localized production, Nissan aims to strengthen its position in the electric vehicle market and meet the growing demand for sustainable transportation options. The collaboration also reflects the broader shift within the automotive industry towards electrification and the importance of developing strategic partnerships to drive innovation and growth.
As Nissan prepares to launch new electric models, including those to be produced in Mississippi, the partnership with SK On underscores the importance of securing a reliable battery supply chain. By working together, both companies can leverage their expertise and resources to accelerate the transition to electric mobility and support the development of a more sustainable transportation ecosystem. With a focus on innovation and collaboration, the SK On and Nissan partnership can drive progress towards a greener future and contribute to the overall transformation of the automotive industry.
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