SK On to Supply Batteries to Nissan for U.S.-Made Electric Vehicles
SK On has entered into an agreement with Nissan to supply batteries for U.S.-made electric vehicles, as announced in a joint press release. The partnership will see SK On providing nearly 100 gigawatt-hours of batteries to Nissan from 2028 to 2033. These batteries will be integrated into electric vehicles manufactured at Nissan’s Canton, Mississippi, assembly plant, with plans to produce at least four EV models under both the main brand and the Infiniti luxury brand.
The collaboration is expected to create 1,700 U.S. jobs at SK On, with a significant investment of $661 million. Additionally, Nissan is investing $500 million to prepare the Canton plant for EV production, bringing the total investment to over $1 billion when considering the contributions of other suppliers.
Progress Towards EV Production in Canton
This partnership signifies Nissan’s progress towards commencing EV production in Canton after facing several delays. Originally slated for a 2025 start date, the production timeline was pushed back to 2027 and then to 2028. The Mississippi plant currently manufactures the Altima sedan and Frontier pickup truck, and this new agreement marks SK On’s first supply deal with a Japanese automaker.
Localized Production and Strategic Planning
Nissan’s emphasis on localized production, with battery manufacturing in close proximity to vehicle assembly, aligns with its Ambition 2030 strategy unveiled in 2021. This strategy aims to optimize production efficiency and mitigate potential tariff impacts. As part of its product plans, Nissan is set to launch 30 new models globally over the next three years, including 16 electrified models. The lineup will feature a Nissan Rogue hybrid equipped with the e-Power hybrid system, along with a next-generation Leaf.