SK On inks 1 million EV battery deal with Nissan

Home > Business > Industry

SK On inks 1 million EV battery deal with Nissan

Published: 19 Mar. 2025, 17:45

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

The logos of SK On and NIssan Motor [SK ON]

SK On sealed a massive battery deal with Nissan Motor to supply its pouch-type batteries for approximately 1 million EVs.

The Korean battery maker will provide 99.4 gigawatt-hours of batteries for six years starting from 2028, according to its regulatory filing on Wednesday.

The size of the deal remains undisclosed, but is speculated to exceed 15 trillion won ($10.3 billion).

It marks SK On's first battery deal with any Japanese automaker, having inked an agreement with Nissan in March of last year on battery cooperation for an earnest entry to the North American market.

SK On's batteries will be shipped to Nissan's manufacturing plant in the U.S. state of Mississippi to be installed in four EV models — two sedans and two SUVs.

SK On will supply its high-performing nickel cobalt manganese batteries with nickel content above 80 percent, which are usually utilized for high-performance premium EVs.

The batteries will be produced at SK's U.S. factories. The battery company currently has an independent factory in Georgia, and is in the process of building three more in the same state as well as Kentucky and in Tenessee jointly with Hyundai Motor and Ford Motor.

When the plants are fully operational, SK On's total U.S. capacity will be boosted to 180 gigawatt-hours.

The battery maker reported 359.4 billion won in operating losses in the fourth quarter of 2024, a swing from an operating profit of 24 billion won in the third quarter, its very first quarterly profit since its establishment in 2021.

Yearly, SK On logged an operating loss of 1.13 trillion won in 2024.

The company was the world's fifth-largest battery maker as of last year, with total shipments reaching 39 gigawatt-hours, a 12.4 percent climb from a year earlier, according to data from SNE Research.

BY SARAH CHEA [[email protected]]