Nissan has chosen South Korea’s SK On as its battery supplier in North America, with both companies agreeing to supply nearly 100 gigawatt-hours (GWh) of high-nickel batteries between 2028 and 2033. The deal, which had been anticipated since January, comes as Nissan undergoes a leadership transition and seeks to strengthen its EV strategy in the U.S. market.
The batteries will be produced in the United States and used exclusively in Nissan’s next-generation electric vehicles, which will be manufactured at its Canton, Mississippi, plant. The agreement includes a total investment of $661 million, covering equipment purchases. This is in addition to Nissan’s previously announced $500 million investment to transition the Canton facility for EV production.
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The move is driven in part by U.S. subsidy policies. Nissan currently sources batteries from China’s AESC, making its EVs ineligible for federal incentives. SK On, however, already operates two battery plants in the U.S. and is building four more with partners, expecting to reach an annual production capacity of 180 GWh once all facilities are fully operational.
“This agreement underscores the strength of our battery technology and our growing presence in the North American market,” said Seok-hee Lee, President and CEO of SK On. “Leveraging our production footprint and expertise, we are committed to supporting Nissan’s electrification strategy and the broader transition to sustainable mobility.”
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Nissan is under pressure to accelerate its EV plans as it navigates financial challenges and management changes. CEO Makoto Uchida is set to step down at the end of March, with Chief Planning Officer Ivan Espinosa taking over from April 1. The company is also facing uncertainty over its long-standing alliance with Renault, while reports suggest it may be exploring new partnerships, with Foxconn among the potential collaborators.
Nissan has pledged to introduce 30 new models over the next three years, including 16 electrified vehicles. The SK On agreement signals the company’s intent to strengthen its U.S. supply chain and expand its EV lineup.
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“This agreement with SK On is a significant milestone for Nissan’s electrification journey and supports further investment in U.S. manufacturing,” said Christian Meunier, Chairman of Nissan Americas. “Through this smart partnership with SK On, we can leverage their growing U.S. production capacity to deliver innovative, high-quality electric vehicles that meet the needs of our customers.”
