SK On Co., a prominent South Korean battery manufacturer, is reportedly in advanced negotiations with Nissan Motor Co. to co-develop a battery cell production facility in the United States. This partnership is poised to strategically supply electric vehicle (EV) batteries to Nissan’s American manufacturing hubs, reflecting a significant step in the automaker’s electrification journey.
Industry insiders suggest that this collaboration will integrate SK On’s battery expertise with Nissan’s expansive automotive manufacturing prowess. The discussions, which are detailed by the Yomiuri Shimbun, are set to conclude in the forthcoming months, potentially making this venture a cornerstone of Nissan’s three-year strategic blueprint, anticipated to be unveiled soon.
This alliance is strategically timed with Nissan’s EV rollout schedule, projecting battery supply commencement around 2026 or 2027. The synergy is not only expected to amplify Nissan’s operational efficiency but also to ensure its new EV models qualify for the U.S. government subsidies stipulated by the 2022 Inflation Reduction Act, thereby enhancing their market competitiveness.
Nissan’s current EV lineup, powered exclusively by Envision AESC batteries, faces eligibility constraints for U.S. subsidies due to the batteries’ Chinese manufacturing origin. A shift to U.S.-produced batteries with SK On could thus redefine Nissan’s positioning in the competitive EV sector, where it currently lags behind peers like Hyundai Motor Co. and Kia Corp.
The partnership would extend SK On’s footprint in the U.S., where the company has already committed to substantial investments, including a multibillion-dollar battery plant venture with Ford Motor Co. and a separate collaboration with Hyundai Motor. These initiatives underscore SK On’s commitment to the U.S. market and its strategy to become a pivotal player in the global battery sector, with plans for an IPO slated for 2026.
This potential collaboration with Nissan represents a significant strategic maneuver, promising to enhance SK On’s global influence while providing Nissan with a competitive edge in the fast-evolving U.S. EV landscape, amidst increasing emphasis on local manufacturing and sustainable energy solutions.
