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Released March 20, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Nissan Motor Corporation (Yokohama, Japan) and South Korea's SK On (Seoul) announced an electric vehicle (EV) battery-supply agreement that will support the automaker's EV production in North America.
Under the agreement, global battery manufacturer SK On would supply nearly 100 gigawatt-hours (GWh) of "high-performance, high-nickel batteries" to Nissan from 2028 to 2033. High-nickel batteries have a high energy density, which equates to longer driving ranges for EVs.
SK On's U.S.-manufactured batteries will power five next-generation EVs to be produced at Nissan's vehicle assembly plant in Canton, Mississippi, where a $500 million retooling project is underway to allow for EV production that now is expected to begin in 2028. Last year, the automaker delayed production until 2027, after the initial start was planned for 2025. "We are adjusting the timeline to ensure that we bring the vehicles to the market at the right time," the company stated. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read more information on the project.
The agreement comes at an unstable time for Nissan financially. The automaker recently reported its net revenue and profits for the April-December 2024 period decreased year over year and said it plans to offer voluntary buyouts at the Canton plant. For more information, see February 14, 2025, article - Honda and Nissan Cancel Merger Agreement.
"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," said Christian Meunier, chairman, Nissan Americas, in a March 19 press release announcing the battery-supply agreement
According to the press release, the production will support 1,700 U.S. jobs at SK On and will involve a total investment of US$661 million, including equipment purchases.
SK On, a subsidiary of South Korea's SK Group, currently operates two battery plants in the U.S. in Commerce, Georgia. When fully operational, Plant 1 and Plant 2 have a combined production capacity of 22 GWh annually--enough to power about 300,000 EVs per year.
SK On also is building battery plants in the U.S. with partners.
That includes a joint venture with Ford Motor Company (NYSE:F) (Dearborn, Michigan): a lithium-ion battery manufacturing plant in Stanton, Tennessee as part of Ford's BlueOval City campus under construction. Production of battery cells is expected to begin in late 2025. Click here to read the project report.
Meanwhile, SK and Hyundai (Seoul) are building a lithium-ion battery plant in Kingston, Georgia, with construction expected to wrap up later this year. The 3.3 million-square-foot facility will be capable of producing up to 30 GWh per year, to be used for locally produced Hyundai and Kia models. Click here to read more project information.
However, the newly announced battery-supply agreement between Nissan and SK On comes at a time when there is uncertainty in the EV market. Ford in August of last year said it planned to delay production at an EV assembly plant under construction in Canada, halt production of a new electric sports utility vehicle (SUV) and slash its annual mix of capital expenditures devoted to EVs from 40% to 30%. Later in September, Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) opted to cut its EV production by around 30% from current levels by 2026, in favor of hybrid models--which are gaining more traction in the U.S. compared with fully-electric vehicles.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Under the agreement, global battery manufacturer SK On would supply nearly 100 gigawatt-hours (GWh) of "high-performance, high-nickel batteries" to Nissan from 2028 to 2033. High-nickel batteries have a high energy density, which equates to longer driving ranges for EVs.
SK On's U.S.-manufactured batteries will power five next-generation EVs to be produced at Nissan's vehicle assembly plant in Canton, Mississippi, where a $500 million retooling project is underway to allow for EV production that now is expected to begin in 2028. Last year, the automaker delayed production until 2027, after the initial start was planned for 2025. "We are adjusting the timeline to ensure that we bring the vehicles to the market at the right time," the company stated. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read more information on the project.
The agreement comes at an unstable time for Nissan financially. The automaker recently reported its net revenue and profits for the April-December 2024 period decreased year over year and said it plans to offer voluntary buyouts at the Canton plant. For more information, see February 14, 2025, article - Honda and Nissan Cancel Merger Agreement.
"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," said Christian Meunier, chairman, Nissan Americas, in a March 19 press release announcing the battery-supply agreement
According to the press release, the production will support 1,700 U.S. jobs at SK On and will involve a total investment of US$661 million, including equipment purchases.
SK On, a subsidiary of South Korea's SK Group, currently operates two battery plants in the U.S. in Commerce, Georgia. When fully operational, Plant 1 and Plant 2 have a combined production capacity of 22 GWh annually--enough to power about 300,000 EVs per year.
SK On also is building battery plants in the U.S. with partners.
That includes a joint venture with Ford Motor Company (NYSE:F) (Dearborn, Michigan): a lithium-ion battery manufacturing plant in Stanton, Tennessee as part of Ford's BlueOval City campus under construction. Production of battery cells is expected to begin in late 2025. Click here to read the project report.
Meanwhile, SK and Hyundai (Seoul) are building a lithium-ion battery plant in Kingston, Georgia, with construction expected to wrap up later this year. The 3.3 million-square-foot facility will be capable of producing up to 30 GWh per year, to be used for locally produced Hyundai and Kia models. Click here to read more project information.
However, the newly announced battery-supply agreement between Nissan and SK On comes at a time when there is uncertainty in the EV market. Ford in August of last year said it planned to delay production at an EV assembly plant under construction in Canada, halt production of a new electric sports utility vehicle (SUV) and slash its annual mix of capital expenditures devoted to EVs from 40% to 30%. Later in September, Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) opted to cut its EV production by around 30% from current levels by 2026, in favor of hybrid models--which are gaining more traction in the U.S. compared with fully-electric vehicles.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
