Nissan's $661 million deal will bring batteries to Canton, MS, plant. Get the details
Ross Reily- Nissan will partner with South Korean company SK On to produce batteries for electric vehicles at its Canton, Mississippi plant.
- The agreement will see SK On supply nearly 100GWh of batteries to Nissan from 2028 to 2033.
- Nissan's Canton facility is being transformed into a Nissan Intelligent Factory, with EV production slated to begin in 2028.
Nissan keeps pushing toward the electric vehicle production it has been talking about for years.
On Wednesday, Nissan announced an agreement with a South Korean company, SK On, that will supply batteries for the EVs to be produced at its Canton, Mississippi assembly plant.
The SK On production facility in the United States is in Commerce, Georgia. However, a spokesperson for Nissan told the Clarion Ledger Wednesday an announcement about where the batteries will be made will come at a later time.
According to Nissan, SK On will supply nearly 100GWh of high-performance, high-nickel batteries to Nissan from 2028 to 2033. Those U.S.-manufactured batteries will power Nissan’s next-generation EVs to be produced at its Canton assembly plant. The agreement reinforces both companies’ commitment to electrification and sustainable mobility, according to the Wednesday press announcement.
In January, Nissan said it is transforming its Canton facility into a Nissan Intelligent Factory by 2028.
That was a change in philosophy as Nissan had originally planned to start producing electric vehicles in the Madison plant this year.
In 2022, Nissan announced it was investing $500 million to transform the Canton Assembly Plant to build the company’s new electric vehicle line with production beginning in 2025.
However, that changed with the Nissan Intelligent Factory announcement.
"Nissan remains committed to the future of mobility and electric vehicle production," said Amanda Plecas, senior manager of Manufacturing and Communications for Nissan told the Clarion Ledger in January. "Our Canton, Mississippi, facility will transform into a Nissan Intelligent Factory, supporting the manufacture of five next-generation electric vehicles, beginning in 2028."
The announcement on Wednesday moves forward the plan for 2028.
This production will support 1,700 U.S. jobs at SK On, and will involve a total investment of $661 million, including equipment purchases. This is in addition to Nissan’s $500 million in investments for EV production at the Canton Assembly Plant.
“This agreement with SK On is a significant milestone for Nissan’s electrification journey and supports further investment in U.S. manufacturing,” said Christian Meunier, chairman, Nissan Americas in a statement. “Through this smart partnership with SK On, we can leverage their growing U.S. production capacity to deliver innovative, high-quality electric vehicles that meet the needs of our customers.”
The partnership marks SK On’s first supply agreement with a Japanese automaker, further expanding its global customer base. SK On, a subsidiary of South Korea’s SK Group, currently operates two battery plants in the U.S. and is building four additional plants with partners. Once fully operational, SK On’s annual U.S. production capacity is expected to exceed 180GWh.
“This agreement underscores the strength of our battery technology and our growing presence in the North American market,” said Seok-hee Lee, SK On president and CEO. “Leveraging our production footprint and expertise, we are committed to supporting Nissan’s electrification strategy and the broader transition to sustainable mobility.”
Nissan is accelerating its EV strategy as part of its global long-term vision. Last year, the company announced plans to launch 30 new models over the next three years, including 16 electrified vehicles.
Ross Reily is a writer for the Clarion Ledger, part of the USA TODAY Network. He can be reached at rreily@gannett.com or 601-573-2952. You can follow him on the X platform, formerly known as Twitter @GreenOkra1.
