According to a report by South Korean media on May 4, 2026, a 15 trillion-won (approximately $9.95 billion US) battery supply contract between SK On and Nissan Motor is at risk of being cancelled, with both sides currently renegotiating the terms. This marks another major setback for South Korean battery makers in the North American market, following the dissolution of SK On’s joint venture with Ford late last year.
SK On stated that negotiations with Nissan are still underway and no final conclusion has been reached.
The immediate cause of the potential contract cancellation is Nissan’s formal notice to suppliers on April 30, announcing the abandonment of its $500 million (US) electrification project at the Canton plant. The facility will instead shift to producing internal combustion engine and hybrid models, while plans for all-electric vehicle production have been postponed indefinitely.
In March last year, SK On announced a battery supply agreement with Nissan. Under the deal, SK On planned to supply nearly 100 GWh of US-made, high-performance, high-nickel pouch cells for Nissan’s next-generation electric vehicles assembled at the automaker’s Canton plant in Mississippi. The supply was scheduled to run from 2028 to 2033, marking SK On’s first partnership with a Japanese carmaker.
A Nissan U.S. spokesperson recently confirmed that the Canton plant will produce vehicles with various powertrains in the future, but battery electric vehicles are no longer part of its roadmap. On the product front, Nissan has drastically reduced its planned lineup of ten new electric models for North America (originally set for 2026—2027) to just four. The much-anticipated next-generation Xterra all-electric SUV project has also been converted to a gasoline-powered model.
Market data further underscores the backdrop of strategic contraction: In the first quarter of 2026, Nissan’s EV sales in North America plummeted—delivering only 56 Ariya units and just 668 Leaf units, marking a year-over-year plunge of over 70%. This sluggish market performance has become a major driver behind Nissan’s pivot away from an aggressive electrification strategy.
Source: WeChat Official Account——鑫椤锂电
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