SK On Signs KRW 15 Trillion Electric Vehicle Battery Supply Contract with Nissan

Supplying High-Nickel Pouch Cells for Six Years Starting in 2028
Securing First Japanese Automaker Client... Diversifying Customer Base

SK On announced on the 19th that it has signed a contract to supply electric vehicle batteries worth 15 trillion KRW to the Japanese automaker Nissan. This is the first time SK On has secured a Japanese complete car manufacturer as a client.

Under this contract, SK On will supply a total of 99.4 GWh (gigawatt-hours) of batteries to Nissan over six years from 2028 to 2033. This amount is enough to be installed in approximately 1 million electric vehicles. Although the exact amount has not been disclosed, the industry estimates that the contract is worth around 15 trillion KRW considering the supply volume and exchange rates.

The batteries supplied by SK On are high-performance high-nickel pouch cells, and production is planned to take place in the North American region. The ordered quantity will be installed in four next-generation electric vehicle models for the North American market, which Nissan plans to produce at its Canton plant in Mississippi.

SK On is currently operating its own factory in Georgia, USA, with an annual capacity of 22 GWh. Additionally, it is constructing four new factories in Georgia, Kentucky, and Tennessee in joint venture (JV) form with its clients. Once all these factories are completed and operating at full capacity, SK On’s battery production capacity in the US will increase to over 180 GWh.

Nissan is also expected to accelerate its electrification efforts by securing a stable battery supply source. Nissan, along with Toyota and Honda, is one of the three major Japanese automakers and is part of the Renault-Nissan-Mitsubishi Alliance, the world’s fourth-largest global automaker as of 2024. Nissan launched the world’s first mass-produced electric vehicle, the Leaf, in 2010 and is regarded as a pioneer in the electric vehicle industry.

Christian Meunier, President of Nissan Americas, said, "This contract is an important milestone in Nissan’s electrification journey in the North American region," adding, "By leveraging SK On’s local battery production capabilities, we will be able to provide innovative, high-quality electric vehicles that meet customer demands."

Lee Seok-hee, CEO of SK On, said, "We are honored that SK On’s excellent battery technology and competitiveness have been recognized once again," and added, "We will actively utilize our production capabilities and know-how in the key North American market to support our electrification partners’ successful EV transition."