South Korea’s SK On, a key player in the electric vehicle (EV) battery market, has secured a landmark supply agreement with Nissan Motor Co. This deal, worth over 15 trillion won (approximately $10.4 billion), marks a significant milestone for SK On as it ventures into the Japanese auto industry, its first such partnership.

Starting in 2028, SK On will supply Nissan with 99.4 gigawatt-hours (GWh) of high-performance, high-nickel pouch-type batteries. These batteries will power Nissan’s next-generation EV models in North America, destined for Nissan’s plant in Mississippi. The agreement covers four new EV models aimed at the North American market, signaling both companies' commitment to the growing electric mobility sector.

“This partnership is important not only because it marks our first deal with a Japanese automaker but also because it strengthens our presence in North America, a key market for us,” said SK On in a regulatory filing.

The deal comes as SK On continues to expand its production capacity. The company already operates a 22 GWh battery plant in Georgia and is building four more plants in Georgia, Kentucky, and Tennessee. Once these plants are operational, SK On’s total production capacity in the U.S. will exceed 180 GWh.

SK On’s client roster includes major global automotive players such as Hyundai, Ford, Volkswagen, and Daimler. This new partnership with Nissan will further diversify its customer base, solidifying SK On’s position as one of the world’s top-five EV battery manufacturers.

According to Lee Seok-hee, CEO of SK On, “This agreement is a testament to our outstanding battery technology and competitiveness. We will leverage our production capacity and expertise in North America to support our partners in their transition to electric mobility.”

As global demand for EV batteries surges, SK On’s strategic move into the North American market aligns with the increasing shift toward sustainable transportation. With this significant deal, the company is poised to be a major player in the future of the electric vehicle industry, ensuring that Nissan’s upcoming models will be powered by cutting-edge, high-performance batteries.

PHOTO: SK INNOVATION

This article was created with AI assistance.