Nissan to source battery cells from SK On in the USA

Nissan has decided on SK On as its battery supplier in North America. Both parties have agreed to supply almost 100 GWh of high-nickel batteries between 2028 and 2033. The deal had already become apparent in January and comes at a time of upheaval at Nissan.

The batteries for Nissan are to be manufactured in the USA and will only be used in the Japanese company’s US vehicles – specifically in Nissan’s next-generation electric cars, which will be produced at the plant in Canton, Mississippi. According to the duo, the deal involves a total investment of 661 million dollars (including the purchase of equipment). This sum is in addition to Nissan’s investment of 500 million dollars for electric car production at the Canton Assembly Plant, according to an accompanying press release.

The background to the deal is likely to be the US subsidy policy, among other things. Nissan currently uses batteries from Chinese manufacturer AESC for its BEVs, which is why it is not eligible for US subsidies. SK On, on the other hand, already operates two battery plants in the USA and is building four more plants with partners. Once fully operational, annual production capacity in the US is expected to reach 180 GWh, according to SK On. “This agreement underscores the strength of our battery technology and our growing presence in the North American market,” commented 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.”

Nissan is under considerable pressure to move – not only in the USA. The struggling car manufacturer has already publicised a change in management: the current CEO Makoto Uchida has to leave at the end of the month. As of 1 April, the current Chief Planning Officer Ivan Espinosa will take over as CEO. The official reason is that Uchida is responsible for the company’s economic crisis and the failed merger negotiations with Honda. The long-standing alliance with the French car manufacturer Renault, which once rescued Nissan in an earlier crisis, is also on the brink of collapse. However, the Japanese manufacturer is dependent on a partner, because, with around three million cars a year, Nissan is considered too small in the industry to manage the upcoming transformation in the volume segment on its own. Foxconn is apparently one of the interested parties.

With the US supply deal, Nissan now apparently wants to send a signal that it is in a position to ‘accelerate’ its eMobility strategy. Last year, the company announced that it would launch 30 new models on the market within three years, including 16 electrified vehicles. These include the aforementioned next-gen vehicles from Canton production.

“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.”

The deal between the two companies was revealed in January, when the first media reports emerged that Nissan could rely on batteries from SK On for the US market in the future. However, ‘The Korea Economic Daily’, for example, spoke of an order volume of 1.8 billion US dollars for battery cells for around 300,000 vehicles.

nissannews.com