SK On Co. has won a contract to supply Nissan Motor Co. with electric vehicle batteries valued at approximately 15 trillion won ($10.3 billion), providing a potential lifeline for the struggling South Korean battery maker.
Under the agreement announced Wednesday, SK On will deliver 99.4 gigawatt hours of high-performance, high-nickel batteries between 2028 and 2033 – enough to power about one million midsize electric vehicles. The cells will likely be manufactured at SK On’s Kentucky plant, which begins mass production in the first half of this year.
The deal represents SK On’s first order from a Japanese automaker and comes at a critical time for the company, which posted an operating loss of 1.13 trillion won in 2024 despite sales of 6.27 trillion won. The company has delayed construction of new U.S. battery plants while utilization rates at existing facilities have fallen below 50%.
Nissan, which produced the world’s first mass-market EV, the Leaf, has struggled with its electrification strategy. The automaker reportedly suffered an operating loss of about 790 billion won last year, largely due to poor performance in the U.S. market.
Market analysts caution that risks remain for the partnership, as Nissan could face the same EV adoption challenges that have affected Ford and other manufacturers in the North American market.
