Nissan set to source EV batteries from SK On
Japanese automotive giant turns to Korea as part of turnaround strategy
Japanese car manufacturer Nissan is planning to procure batteries for its EVs sold in the U.S. from South Korea’s SK On from around 2028, according to the Nikkei newspaper. Nissan and SK On have agreed on the supply of 20 Gigawatt-Hour (GWh) worth of ternary lithium batteries, equivalent to approximately 300,000 standard EVs in a move seen as part of Nissan’s strategy to ramp up its EV business amid a planned turnaround.
The news comes on the back of recent reports that Executive Vice President Hideyuki Sakamoto suggested Nissan is considering producing compact EVs at its plant on the southern Japanese island of Kyushu. Nissan is reportedly looking to cut 9,000 jobs and 20% of its global manufacturing capacity.
Sakamoto underlined that Nissan does not plan to cut production capacity in Kyushu as part of cost-cutting measures. “The Kyushu region is also a highly competitive base geopolitically, so we would like to utilize it,” Sakamoto stated.
Sources revealed that Nissan may bring ultra-compact EV production in-house at its Kyushu factory starting April 2028, potentially boosting profit margins. Additionally, Nissan and Honda are in talks to merge by 2026, which would be a historic marker for Japan’s auto industry in response to the growing competition from Chinese EV makers.
