Nissan’s $661 Million Investment to Boost Electric Vehicle Production Delayed Until 2028

Nissan has made a significant move in the electric vehicle (EV) market by signing a supply agreement with South Korea’s SK On for nearly 100 gigawatt-hours (GWh) of US-made batteries, enough to support the production of around 1 million midsize electric models.

Announced on Wednesday, this partnership marks a pivotal step for Nissan as it ramps up its EV production in North America over the coming years, despite delays in its manufacturing schedule.

The new deal entails a substantial investment of $661 million, building on Nissan’s prior $500 million upgrade of its Canton, Mississippi plant designed for electric vehicle production.

Nissan’s strategic plan and intends to unveil 30 new vehicles to 2028

However, the expected commencement date for EV manufacturing at this facility has been pushed back to 2028, which marks a significant delay from initial plans. The newly established partnership with SK On will create approximately 1,700 jobs, underscoring the growing employment landscape in the American battery industry.

This agreement is particularly notable as it represents SK On’s first collaboration with a Japanese automaker. The South Korean battery giant is rapidly expanding its presence in the US, with plans to develop multiple production plants aimed at achieving over 180 GWh of annual capacity.

The “high-performance, high Nickel batteries” produced will be utilized in Nissan’s upcoming next-generation electric models.

Looking ahead, Nissan has adjusted its strategic plan and intends to unveil 30 new vehicles over the next three years, of which 16 will be electrified, including both fully electric and hybrid models.

While the company had initially aimed to introduce five new electric models, current reports suggest that plans may be changing, potentially limiting some designs to its Sunderland, UK plant.

With this robust investment and supply agreement, Nissan is poised to strengthen its position in the burgeoning electric vehicle market, responding to the increasing demand for sustainable automotive technologies.