SK On announced on the 19th that it has signed a battery supply contract with the Japanese automaker Nissan. This is the first time SK On has a Japanese complete vehicle manufacturer as a client. Although the specific contract amount was not disclosed, industry estimates suggest it will exceed 15 trillion won considering the supply volume.
The contract period is six years, from 2028 to 2033, during which SK On will supply a total of 99.4 gigawatt-hours (GWh) of batteries to Nissan. This amount is sufficient to equip about 1 million mid-sized electric vehicles. The batteries supplied by SK On are high-performance nickel-rich pouch cells, and production is planned to take place in North America.
The order quantity will be used in four types of next-generation electric vehicles that Nissan plans to produce at its Canton, Mississippi, plant for the North American market. SK On noted that "the demand for high-energy-density nickel-rich batteries, which are emphasized in the U.S. market for their one-charge driving range, has been proven once again."
North America is a region where SK On is strategically focusing its efforts. SK On is currently operating an in-house plant in Georgia with an annual capacity of 22 GWh. Additionally, it is constructing a total of four new plants in Georgia, Kentucky, and Tennessee in joint ventures (JVs) with client companies. Once all these plants are completed and operate at full capacity, SK On's battery production capacity in the U.S. will exceed 180 GWh.
Nissan, along with Toyota and Honda, is one of the top three automakers in Japan and is part of the Renault-Nissan-Mitsubishi Alliance, which ranks fourth in global automotive sales as of 2024. In 2010, it launched the world's first mass-produced electric vehicle, the "Leaf."
Christian Meunier, president of Nissan Americas, said, "This contract is an important milestone in Nissan's electrification journey in North America, and it is a testament to our commitment to investing in the U.S." He added, "We will leverage SK On's local battery production capabilities to provide innovative, high-quality electric vehicles that meet customer demands."
Lee Seok-hee, CEO of SK On, stated, "I find it meaningful that SK On's excellent battery technology and competitiveness have been recognized once again." He emphasized, "We will actively utilize our production capabilities and know-how in North America, our core market, to assist our electrification partners in their successful EV transition."