Nissan to Source SK On Batteries for U.S. EVs by 2028 – Report

Credit: Nissan

Nissan Motor plans to procure batteries for its electric vehicles (EVs) sold in the U.S. from South Korea’s SK On starting around 2028, the Nikkei newspaper reported on Thursday.

The agreement involves a supply of 20 Gigawatt-hours (GWh) of ternary lithium batteries, sufficient for approximately 300,000 standard EVs, as the automaker seeks to strengthen its EV business amid a broader turnaround effort.

See also: Nissan Delays EV Production at Ohio Plant, Cancels Smaller Electric SUV Plans

2024 Nissan LEAF (Credit: Nissan)

Separately, Nissan executive vice president Hideyuki Sakamoto confirmed the company is considering producing compact EVs at its Kyushu plant in southern Japan, reaffirming a Reuters report from 2024. “The Kyushu region is a highly competitive base geopolitically, so we would like to utilize it,” Sakamoto stated on Wednesday, emphasizing that there are no plans to cut production capacity at the facility despite ongoing cost-reduction measures.

Nissan has been implementing a turnaround plan involving a 20% cut in global manufacturing capacity and the elimination of 9,000 jobs. Success in these efforts could influence the company’s ongoing merger talks with Honda Motor, which aim to be finalized by 2026. The merger would mark a historic shift for Japan’s automotive industry, as legacy manufacturers respond to increasing competition from Chinese EV makers.

See also: Nissan to Build LFP Battery Plant in Kitakyushu with 985 Million USD Investment

Credit: Nissan

The potential in-house production of ultra-compact EVs at the Kyushu plant, starting from the business year beginning April 2028, could enhance profit margins, according to sources cited by Reuters. This move aligns with Nissan’s strategy to consolidate production and improve competitiveness in the fast-evolving EV market.

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