Nissan Secures Massive 100 GWh Supply of US-Made Batteries from SK On, Electrifying its Future

In a move signaling a major acceleration of its electric vehicle (EV) ambitions, Nissan has announced a landmark agreement with South Korean battery manufacturer SK On. The deal will see Nissan secure a staggering 100 gigawatt-hours (GWh) of lithium-ion batteries produced in the United States, providing enough power for approximately 1.5 million electric vehicles.

Fueling Nissan's Ambitious EV Roadmap

This significant battery supply agreement directly supports Nissan's ambitious electrification roadmap. The company aims to have EVs account for 40% of its US sales by 2030 and achieve carbon neutrality across its operations by 2050. The partnership with SK On provides the battery capacity essential to achieving these goals.

Key Highlights of the Agreement:

• 100 GWh Capacity: The agreement ensures a substantial supply of batteries, enough to power a significant portion of Nissan's future EV production.
• US Manufacturing: Batteries will be produced at SK On's US facilities, promoting domestic manufacturing and potentially qualifying vehicles for US EV tax credits.
• Next-Generation Technology: The agreement focuses on supplying advanced lithium-ion batteries with a focus on energy density, charging speed, and lifespan improvements.
• Long-Term Security: The partnership provides Nissan with a stable and secure battery supply chain, crucial in the rapidly growing EV market.

A Win-Win for Both Companies

This agreement is mutually beneficial, bolstering the strategic positions of both Nissan and SK On:

Benefits for Nissan:

• Accelerated EV Production: Secure battery supply enables Nissan to scale up EV production and introduce new models confidently.
• Reduced Costs: Sourcing batteries from a major supplier like SK On can lead to cost savings through economies of scale.
• Technological Advancement: Access to SK On's battery technology expertise can drive innovation and improve the performance of Nissan EVs.

Benefits for SK On:

• Increased Market Share: The deal solidifies SK On's position as a leading battery supplier in the rapidly growing North American EV market.
• Large-Scale Production: The agreement guarantees significant demand for SK On's US facilities, ensuring their long-term viability.
• Technological Collaboration: Working closely with Nissan can foster further innovation in battery technology.

Implications for the EV Industry

Nissan's substantial battery procurement from SK On sends a strong signal to the automotive industry:

• Accelerating EV Adoption: Major automakers are aggressively securing battery supplies, indicating a strong commitment to electric mobility.
• Shift to Domestic Production: The focus on US-manufactured batteries highlights the importance of localizing supply chains to meet growing demand and potential regulatory requirements.
• Increased Competition: As more automakers enter the EV market and secure battery supplies, competition is likely to intensify, potentially leading to faster innovation and more affordable electric vehicles for consumers.

Looking Ahead

This landmark agreement marks a significant step forward for Nissan's electrification strategy. With a secure supply of US-made batteries from SK On, Nissan is well-positioned to expand its EV lineup, meet its ambitious sales targets, and play a leading role in shaping the future of electric mobility.