SK Battery America (Image courtesy of SK On)
SEOUL, March 19 (Korea Bizwire) — SK On has signed its first-ever battery supply contract with a Japanese automaker, securing a massive deal with Nissan valued at an estimated 15 trillion won (approximately $11 billion).
In a regulatory filing on Tuesday, SK On announced that it will supply Nissan with 99.4 gigawatt-hours (GWh) of high-performance high-nickel pouch cells over six years, from 2028 to 2033. The volume is sufficient to power roughly 1 million mid-sized electric vehicles.
Production will take place in North America, with the batteries destined for four upcoming electric vehicle models to be manufactured at Nissan’s plant in Canton, Mississippi.
This deal elevates SK On’s position as a key supplier alongside its existing major clients: Hyundai Motor Group, Ford, Volkswagen, and Daimler. The company now plans to accelerate customer diversification and solidify its place as a global top-five battery maker.
Nissan Americas Headquarters (Image courtesy of Nissan)
“Beyond securing our first partnership with a Japanese automaker, this agreement significantly expands our presence in the strategically important North American market,” SK On said in a statement.
SK On currently operates a 22 GWh facility in Georgia and is constructing four additional plants across Georgia, Kentucky, and Tennessee through joint ventures. When all plants are operational, the company’s U.S. production capacity is expected to exceed 180 GWh annually.
According to market research firm SNE Research, SK On’s global battery usage reached 39 GWh in 2024, and the Nissan deal represents an additional supply equal to approximately 40% of its current annual capacity — providing strong momentum for long-term growth.
For Nissan, the agreement ensures a stable supply of advanced batteries in its key North American market. The automaker, part of the Renault–Nissan–Mitsubishi Alliance, has been at the forefront of electric vehicle development since introducing the world’s first mass-market EV, the Leaf, in 2010.
Nissan recently announced plans to launch 30 new models globally by 2027, with 16 of those being electric vehicles. Beginning in 2028, the company will manufacture two SUVs and two sedans as part of its EV lineup in the United States.
Christian Meunier, President of Nissan Americas, called the deal “a milestone in Nissan’s electrification journey in North America and proof of our investment commitment to the U.S.” He added, “With SK On’s local battery production capabilities, we can deliver innovative, high-quality EVs tailored to customer needs.”
SK On CEO Lee Seok-hee said, “This agreement is further recognition of SK On’s world-class battery technology and competitiveness. We will continue to leverage our production capabilities and expertise in North America to support our partners’ successful EV transitions.”
Ashley Song (ashley@koreabizwire.com)
