Japanese legacy automaker Nissan is eyeing a potential partnership with South Korean battery giant SK On to support its electric vehicle production in the United States, Reuters reports, citing Yomiuri Shimbun newspaper.
Nissan to tap SK On for its US EV production
According to the report, Nissan is considering sourcing batteries from SK On for its electric vehicle offerings in the US market.
Nissan is apparently planning to release information about this potential partnership in its upcoming three-year mid-term management plan, suggesting that the Japanese automaker is now reevaluating its current supply chain in the US, which involves AESC.
Nissan announced last year that it plans to add a second battery supplier with local manufacturing in the US as it seeks to benefit from the federal tax credits of up to $7,500 under the Inflation Reduction Act.
Significance
Nissan is currently sourcing electric vehicle batteries produced by a Chinese company, disqualifying its products from the $7,500 tax credits in the US.
Therefore, partnering with SK On can finally enable Nissan to access the tax credits, given that the South Korean battery maker’s batteries adhere to the updated regulation’s more stringent requirements.
In fact, SK On’s battery components will enable the Volkswagen ID. 4 to benefit from the full tax credit this year, according to the German automaker.
EV targets
Nissan originally announced under its Ambition 2030 that it aims to launch 23 electrified vehicles, including 15 EVs.
According to Benzinga, Nissan raised this target to 27 electrified vehicles, including 19 new EVs, by the fiscal year 2030.
With this, the electrification mix across Nissan and Infiniti is expected to grow from the 50% forecast to over 55% globally by 2030.
