Seoul: SK On Co., the battery affiliate of South Korea’s SK Group, announced that it has secured a major electric vehicle (EV) battery supply deal from Japanese automaker Nissan Motor Co., marking its first partnership with a Japanese car manufacturer. SK On will supply Nissan with 99.4 gigawatt-hour (GWh) high-performance high-nickel pouch-type batteries from 2028 to 2033. Financial terms weren’t disclosed, but the deal is estimated to be worth over 15 trillion won (US$10.4 billion).
According to Yonhap News Agency, production of the batteries will take place in North America, with the supplied batteries designated for Nissan’s next-generation EV models set to be manufactured at the automaker’s plant in Mississippi. The agreement covers four new EV models aimed at the North American market. “This contract is significant not only because it marks our first partnership with a Japanese automaker but also because it expands our supply network in North America, a key strategic market for us,” the company said.
SK On currently operates its own 22 GWh battery plant in Georgia in the United States and is constructing four new plants in Georgia, Kentucky, and Tennessee through joint ventures. Once all these facilities are fully operational, SK On’s battery production capacity in the U.S. is expected to exceed 180 GWh. SK On’s clientele includes Hyundai Motor Group, Ford, Volkswagen, and Daimler.
With this latest milestone, the company aims to accelerate customer diversification and further solidify its position as a global top-five battery manufacturer. “This agreement is a testament to SK On’s outstanding battery technology and competitiveness. We will leverage our production capacity and expertise in North America to support our partners in successfully transitioning to electric mobility,” SK On chief executive officer (CEO) Lee Seok-hee said.