SK On is in talks to supply electric vehicle (EV) batteries to Nissan in the US, according to reports in Japan.
The pair were understood to be in discussions to build a jointly owned battery plant in the US to supply the automaker’s local battery electric vehicle (BEV) operations.
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A final decision was expected to be made in the next few months following detailed discussions and planning. Batteries produced at the plant would likely qualify for tax incentives under the US Inflation Reduction Act.
If the project was given the green light, the plant was likely to begin battery production from 2026 with Nissan scheduled to complete the US$500m refurbishment of its Canton, Mississippi plant in 2025 to produce a new range of Nissan and Infinity BEV models.
Nissan BEVs are currently powered by batteries made by China’s Envision AESC, making them ineligible for US subsidies. Nissan sold around 20,000 electric vehicles in the US last year but new models coming on stream will inevitably lift volume significantly.
Nissan recently announced talks with Honda Motor to collaborate in the development and procurement of major BEV components.
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By GlobalDataSK On is aggressively expanding its global operations to play a significant role in the global BEV supply chain.
The company already has a plant in Georgia and is currently building four more plants in the US, in ventures with Ford and Hyundai, while capacity is expanded in South Korea, Europe and China.
