Nissan to Source EV Batteries from SK On, Considers KY Plant for Compact Cars

Nissan Motor plans to procure batteries for electric vehicles (EVs) sold in the U.S. from SK On of South Korea, starting around 2028. This move aligns with Nissan's efforts to accelerate its EV business as part of its turnaround strategy.

Separately, Nissan has indicated it is exploring the production of compact EVs at its Kyushu plant, confirming a Reuters report from 2024.

The automaker has agreed with SK On to supply 20 Gigawatt-Hour (GWh) worth of ternary lithium batteries, which equates to around 300,000 standard EVs. A Nissan spokesperson has yet to comment on the matter.

Nissan has also considered building its ultra-compact EVs at its Kyushu factory, starting from April 2028. This would enhance profit margins by bringing production in-house.

Nissan and Honda are in merger talks scheduled for completion by 2026. This strategic move reflects the growing competition from Chinese EV manufacturers, posing a significant threat to legacy automakers.