1st deal with Japanese automaker estimated to be worth over W15tr
SK On has secured a large-scale contract to supply 99.4 gigawatt-hours of electric vehicle batteries to Nissan, the Korean battery maker announced Wednesday.
According to the announcement, SK On will supply batteries to the Japanese automaker from 2028 to 2033. The total supply is enough to power about one million medium-sized EVs.
The exact worth of the contract was not disclosed. Given the agreement's size, battery industry watchers estimated the deal to be worth over 15 trillion won ($10.3 billion).
The deal marks SK On’s first contract with a Japanese automaker, signifying the company’s efforts to diversify its client portfolio.
The battery production will take place at SK On’s North American plants. The Korean company currently operates a plant capable of producing 22 GWh of batteries per year in the state of Georgia. It is also setting up four new plants through joint ventures with global auto brands such as Hyundai Motor and Ford.
The supplied products will be SK On’s high-performance high-nickel pouch cells.
The Korean battery maker’s supply will be loaded onto Nissan’s four next-generation EVs -- two sedans and two sport utility vehicles – specifically developed for the North American market. They are planned to be rolled out at the latter’s manufacturing foothold in Mississippi from 2028.
“We think that (the deal) is very meaningful as it recognized SK On’s excellent battery technology and competitiveness,” said Lee Seok-hee, CEO of SK On.
“We will support our partners’ successful EV transition by actively utilizing production capacities and expertise in North America, a key market.”
hwkan@heraldcorp.com
