Nissan Motor will purchase batteries for 300,000 electric vehicles from South Korea’s SK On, securing a critical U.S. supply chain component ahead of potential consolidation with Honda Motor. The agreement covers 20 gigawatt-hours of ternary lithium batteries, with deliveries starting around 2028.
The deal marks a shift from Nissan’s original plan to form a joint venture with SK On for a U.S. battery factory. Industry sources say the change reflects ongoing merger discussions with Honda and current market conditions, where major U.S. automakers are scaling back EV investments.
SK On will supply premium ternary lithium batteries for Nissan’s larger vehicles and SUVs, while the automaker develops cheaper lithium iron phosphate batteries in Japan for its smaller models.
The agreement helps fulfill Nissan’s target of 60 GWh U.S. battery capacity by fiscal 2030. The company moves forward despite uncertain U.S. EV policies, including potential changes to federal incentives and California’s planned 2035 ban on new gasoline vehicles.
The deal follows similar moves by Japanese rivals. Honda partnered with LG Energy Solution in 2022 for a U.S. battery plant, while Toyota secured a long-term supply contract with LG last October.
