SK On and Nissan announce North American EV battery production supply agreement

Global battery manufacturer SK On and Nissan have announced a new battery supply agreement that will support Nissan’s EV production in North America.

Under the agreement, SK On will supply nearly 100 GWh of high-nickel batteries to Nissan from 2028 to 2033. These US-manufactured batteries will power Nissan’s next-generation EVs to be produced at its Canton, Mississippi assembly plant.

This production is expected to support 1,700 US jobs at SK On, and will involve a total investment of $661 million, including equipment purchases, in addition to Nissan’s $500 million in investments for EV production at the Canton Assembly Plant.

The partnership marks SK On’s first supply agreement with a Japanese automaker. SK On, a subsidiary of South Korea’s SK Group, currently operates two battery plants in the US, and is building four additional plants with partners. Once fully operational, SK On’s annual US production capacity is expected to exceed 180 GWh.

“This agreement underscores the strength of our battery technology and our growing presence in the North American market,” said Seok-hee Lee, SK On President and CEO. “Leveraging our production footprint and expertise, we are committed to supporting Nissan’s electrification strategy.”

Nissan has announced plans to launch 16 new electrified vehicle models over the next three years, including all-new EVs from its Canton assembly plant starting in 2028.

“This agreement with SK On is a significant milestone for Nissan’s electrification journey and supports further investment in US manufacturing,” said Christian Meunier, Chairman, Nissan Americas. “Through this smart partnership with SK On, we can leverage their growing US production capacity to deliver innovative, high-quality electric vehicles.”

Sources: SK On, Nissan