Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
SK On, Nissan sign $10 bil. battery supply deal
Visitors crowd SK On's exhibition booth during the InterBattery 2025 trade show at COEX in Seoul, March 5. Yonhap
By Park Jae-hyuk
SK On will supply its electric vehicle (EV) batteries to Nissan, which has become the first Japanese carmaker using the Korean company's products.
The battery maker said Wednesday that its wholly owned U.S. subsidiary, SK Battery America, signed a contract with Nissan's U.S. subsidiary to supply 99.4 gigawatt-hours (GWh) of batteries between 2028 and 2033.
The volume is large enough to produce 1 million mid-size EVs, according to SK On.
Although the companies did not disclose the deal's monetary value, it is estimated to be around $10 billion.
Under the agreement, SK On will supply its high-nickel battery cell pouches made in North America to Nissan's Canton plant in Mississippi, so that the carmaker can use the cells for its four types of next-generation EVs customized for the North American market.
The Korean firm emphasized that their contract proved the U.S. market's demand for batteries with higher energy densities, which enable the driving of longer distances with a single charge.
"Based on our production capability and knowhow in the North American market, we will support successful electrification of our partners," SK On CEO Lee Seok-hee said.
SK On is currently operating its own factory in the U.S. state of Georgia. Its joint ventures with Hyundai Motor and Ford Motor are also building four additional plants in the southern parts of the United States.
Once all these facilities become fully operational, SK On's battery production capacity in the U.S. will surpass 180 GWh.
Nissan Americas Chairman Christian Meunier anticipated that the company could deliver innovative, high-quality electric vehicles that meet customer demands by leveraging SK On's battery production capabilities in the U.S., according to SK On's press release.