Nissan just dropped a bombshell in the EV world. The Japanese automaker signed a whopping $661 million deal with SK On for 100 gigawatt-hours of batteries. Production starts in 2028 at U.S. facilities. First time a Korean battery maker partnered with a Japanese car brand—pretty big deal. Nissan’s planning four new electric vehicles and creating about 1,700 jobs. Smart move dodging Chinese suppliers amid trade tensions. The full strategy reveals an ambitious electric roadmap.
Nissan just inked a massive $661 million battery deal with South Korean manufacturer SK On, securing an essential power source for its ambitious electric vehicle plans. The agreement will provide Nissan with a whopping 100 gigawatt-hours of batteries between 2028 and 2033. Not too shabby for a company playing catch-up in the EV race.
This marks the first collaboration between SK On and any Japanese automaker. Timing is everything, right? The batteries—high-nickel pouch cells designed specifically for next-generation EVs—will be produced in U.S. facilities. The companies previously discussed establishing a joint venture for battery manufacturing before settling on this supply agreement. Don’t expect to see these powering your current Leaf or Ariya models though. These are for the future stuff.
Nissan isn’t messing around with its EV strategy. The company has already poured $500 million into its Canton, Mississippi plant, where it plans to roll out four brand-new battery-electric vehicles starting in 2028. While Nissan develops its offerings, other Japanese manufacturers like Acura have prioritized luxury and performance models for their high-capacity batteries. It’s part of Nissan’s global plan to launch 30 new models by 2028, with more than half being electrified. Finally joining the party!
SK On isn’t exactly a slouch in the U.S. market either. The company currently operates two battery plants stateside with four more under construction. Once completed, their U.S. production capacity will exceed 180 GWh. The Nissan partnership alone is expected to create about 1,700 jobs. This aligns perfectly with the growing renewable energy sector that created 11.5 million jobs globally. Green jobs for everyone!
The deal has serious market implications. It reduces Nissan’s dependence on Chinese battery suppliers—smart move given current trade tensions—and aligns perfectly with U.S. policy encouraging domestic production. Talk about killing two birds with one stone.
For the environment and economy, this partnership checks all the boxes: supporting low-carbon transportation, creating American jobs in green tech, reducing transportation costs, and aligning with Inflation Reduction Act incentives.
Seems like Nissan finally got the memo that localized production is the way forward. Better late than never!
