SK On secured a major contract to supply Nissan with 99.4 gigawatt-hours of high-nickel pouch batteries valued at approximately 15 trillion won ($11.2 billion), marking its first significant partnership with a Japanese automaker.
The six-year agreement, which begins in 2028, will provide batteries for roughly one million of Nissan’s medium-sized electric vehicles produced at its Canton, Mississippi plant. The deal will initially support four new models as part of Nissan’s ambitious electrification strategy.
SK On CEO Lee Seok-hee highlighted the recognition of the company’s battery technology and competitiveness in a statement, emphasizing its commitment to supporting partners’ EV transitions in North America.
The South Korean battery manufacturer will produce the cells at its growing North American manufacturing network. SK On currently operates a 22GWh plant in Georgia and is building four additional facilities across Georgia, Kentucky and Tennessee through joint ventures, with total US capacity expected to exceed 180GWh.
The contract represents approximately 40% of SK On’s global EV battery usage last year, according to market research firm SNE Research.
To support large-scale battery production, SK On has secured strategic supply agreements, including contracts with ExxonMobil for lithium supply and partnerships with Posco Pilbara Lithium Solution and Chinese manufacturer Dangsheng Technology for critical materials.
