SK On has entered into a significant agreement with Nissan Motor to supply pouch-type batteries for approximately one million electric vehicles (EVs). According to a regulatory filing on Wednesday, the Korean battery manufacturer will deliver 99.4 gigawatt-hours of batteries over six years starting in 2028. Although the total value of the deal has not been disclosed, it is estimated to exceed 15 trillion won.
This partnership marks SK On’s first battery supply agreement with a Japanese automaker. The deal was initially established in March of the previous year as part of SK On’s strategic efforts to strengthen its presence in the North American market. Under the agreement, SK On’s batteries will be shipped to Nissan’s manufacturing facility in Mississippi, where they will be installed in four EV models, including two sedans and two SUVs.
SK On will provide its high-performance nickel cobalt manganese (NCM) batteries, which contain nickel content above 80 percent. These batteries are typically used in high-performance premium EVs. The production of these batteries will take place at SK On’s U.S. facilities. Currently, SK On operates an independent factory in Georgia and is in the process of constructing three additional plants in the same state, as well as in Kentucky and Tennessee, in collaboration with Hyundai Motor and Ford Motor. Once fully operational, SK On’s total U.S. production capacity will increase to 180 gigawatt-hours.
In the fourth quarter of 2024, SK On reported operating losses of 359.4 billion won, a reversal from an operating profit of 24 billion won in the third quarter—the company’s first quarterly profit since its establishment in 2021. For the entire year of 2024, SK On recorded an operating loss of 1.13 trillion won. Despite these financial challenges, SK On remained the world’s fifth-largest battery manufacturer as of last year, with total shipments reaching 39 gigawatt-hours, representing a 12.4 percent increase from the previous year, according to data from SNE Research.
Source: Korea JoongAng Daily
