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Nissan to Secure EV Battery Supply from SK On and Consider Compact EV Production at Kyushu Plant

Nissan Motor is planning to source batteries for its electric vehicles (EVs) sold in the U.S. from South Korea’s SK On, starting around 2028, according to the Nikkei newspaper. This move is part of Nissan’s broader strategy to expand its EV business and execute a turnaround plan for the struggling automaker.

In addition, Nissan is contemplating the production of compact EVs at its Kyushu plant in southern Japan, confirming details first reported by Reuters in 2024. As part of its ongoing efforts to cut costs, Nissan has been negotiating a major restructuring plan that includes reducing 9,000 jobs and scaling back 20% of its global manufacturing capacity.

Nissan and SK On have reached an agreement for the supply of ternary lithium batteries with a capacity of 20 Gigawatt-Hours (GWh), which could power around 300,000 standard EVs, the Nikkei reported.

A Nissan spokesperson has not yet responded to requests for comment on the agreement. However, Hideyuki Sakamoto, Nissan’s executive vice president, confirmed that the company is considering manufacturing compact EVs at the Kyushu plant. He emphasized that no plans are currently in place to reduce production capacity at the plant.

Sakamoto highlighted Kyushu as an important manufacturing hub, noting its competitive advantages in terms of geopolitical location. “We would like to make full use of it,” he said.

Earlier reports from March 2024 suggested that Nissan might bring the production of its ultra-compact EVs in-house, potentially starting in April 2028. This move would enable the company to improve its profit margins.

In a separate development, Nissan and Honda Motor are discussing a merger expected by 2026, marking a significant shift in Japan’s automotive industry. The merger reflects the growing competition from Chinese EV manufacturers, who are posing a serious challenge to traditional global automakers.

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