Japanese automotive manufacturer Nissan Motors is set to choose SK On to supply it with US-produced EV batteries. This will be in addition to the present Japanese supplier, AESC, owned by Chinese Envision Energy. Using US-made batteries meets tax break requirements for the US Inflation Reduction Act. They are set to tighten.
Local media, including the Yomiuri newspaper, report the two companies are close to agreeing a deal.
SK On has been approached for comment. It manufactures high capacity lithium-ion batteries at three North American locations: Georgia, Tennessee and Kentucky. Nissan is preparing to build EVs in Canton, Mississippi. Since 2003, Nissan has invested $4 billion in the plant, which produces 410,000 vehicles annually.
The two other US manufacturing sites, Smyrna in Tennessee, and Decherd in Kentucky, are strategically well located to the SK On plants.
By 2026, SK On and its partners will have more than 180GWh of annual capacity in the US, the company said. It is also exploring new markets for wider battery technology application, including energy storage and battery as a service.
German automotive producer BMW’s factory in Spartanburg is the major off taker of SK On’s South Carolina factory. The 30 GWh Bowling Green, Kentucky, factory will be ready in 2025 and will produce battery cells with 30% higher energy density than the present range, the company said.
