Nissan and SK On are planning a US battery factory

Nissan is negotiating with SK On regarding the supply of battery cells for its electric cars produced in the USA. According to a Japanese media report, the two companies are planning to build a joint battery factory in the USA for this purpose, which could start production in 2026.

According to the Japanese daily newspaper Yomiuri Shimbun, the current US subsidy policy is said to be the background to these considerations. Nissan currently uses batteries from AESC for its BEVs, which is why they are not entitled to US subsidies. A final decision on the cooperation between Nissan and SK On is to be made in the coming months.

One piquant detail: AESC, or Automotive Energy Supply Company for long, was originally founded as the battery division of Nissan. However, Nissan sold a majority stake in the battery business to the Chinese Envision Group, which is why the division operated as Envision-AESC for several years. In the meantime, the company has reverted to the name AESC, but the Chinese ownership has not changed.

Nissan is probably planning a total of four electric models from its US plant in Canton, Mississippi. According to earlier information, this will involve two electric saloons, which are to be launched on the market in 2026. Two electric crossover models are to follow in the next two years. One saloon and one crossover are to be launched under the Nissan brand and the others as Infiniti.

It is unclear whether battery cells from the possible joint plant of Nissan and SK On will be received directly by the planned start of production of the electric cars in 2026. According to sources at the Yomiuri Shimbun, the two companies are still negotiating the details of the collaboration in March 2024 and expect the talks to continue for several months. It is questionable whether an entire battery plant can be built and put into operation in just one and a half years from the investment decision.

However, SK On already has battery factories in the USA and has more under construction. However, these factories mostly partner with other car manufacturers, such as Hyundai for Georgia and Ford as part of the BlueOvalSK joint venture for Kentucky and Tennessee. The existing factory in Georgia already has customers such as Ford and Volkswagen.

kedglobal.com, reuters.com