Latest news with #SKOn
Auto Blog
5 days ago
- Automotive
- Auto Blog
Nissan's Plan To Avoid Tariffs? Take Over a Ford Plant
Nissan will use a defunct Ford factory to manufacture EV batteries Though not fully implemented, the specter of tariffs looms large over the auto industry. After decades of building global supply chains and leaning into overseas manufacturing, automakers are growing concerned that tariffs will hit hard and fast. Like many, Nissan is looking to stateside production and procurement to avoid tariffs (should they arrive) and is now partnering with Ford to help in one critical way. 0:01 / 0:09 Tesla sales in Europe drop yet again Watch More The Wall Street Journal reports that a Ford plant in Kentucky will now be used by Nissan to manufacture batteries for its EVs. Though the report doesn't detail Nissan's production plans, expect that batteries for the Ariya and Leaf, Nissan's only two fully electric vehicles, will come from this Kentucky plant. 2024 Nissan Ariya — Source: Nissan Nissan is using Ford for all the right reasons In 2021, Ford built two factories in Kentucky as part of a larger $7 billion investment in production and electrification. The two plants were a joint venture with SK On, a battery maker in Korea that produces EV batteries and power storage solutions. The Wall Street Journal notes that weaker-than-expected demand for EVs caused one of the Kentucky facilities to sit dormant. That low demand eventually met with high production costs and looming tariffs, creating a slowdown in Ford's battery manufacturing. Nissan's choice to utilize this defunct factory helps it avoid tariffs on imported EV batteries, which promise to be a substantial additional cost to EV buyers that they are unlikely to tolerate. In Q1, Nissan reported a $4.5 billion loss and canceled a planned battery factory in Japan. SK On and Nissan already have a deal in place, too; in March, Nissan said SK On would provide batteries for electrified SUVs in production at its Canton, Mississippi, plant. It seems reasonable that this defunct Ford plant in Kentucky—that was built in partnership with SK On—will serve as the production point for SK On and Nissan's efforts. Why this matters for Nissan (and Ford) Details of the deal between SK On and Ford are unknown, but this development is significant for Ford. It either recoups losses by leasing the factory to Nissan or avoids any potential breach of contract with SK On as the factory sits dormant. If SK On owns and operates the factory, but Ford can't satisfy a production agreement, Nissan stepping in may ease Ford's accountability. Nissan continuously struggles to gain footing in the U.S. market despite making respectable SUVs and a great EV SUV. If this deal with SK On keeps Ariyas (and Leafs, maybe?) on its lots, EV buyers may give its vehicles a closer look. Many other automakers, like BMW, are in a holding pattern with electrified vehicles, so the time might be right for Nissan to gain market share. 2024 Nissan Ariya — Source: Nissan Final thoughts It's a tenuous time for Nissan. A spiked deal with Honda had many wondering if the brand would survive, and as EV demand wanes and tariffs loom on the horizon, Nissan must thread the needle on electrification to gain market share. Partnering with SK On to produce EV batteries domestically is smart, but whether it results in more sales remains to be seen.
Miami Herald
27-05-2025
- Automotive
- Miami Herald
Nissan's Plan To Avoid Tariffs? Take Over a Ford Plant
Though not fully implemented, the specter of tariffs looms large over the auto industry. After decades of building global supply chains and leaning into overseas manufacturing, automakers are growing concerned that tariffs will hit hard and fast. Like many, Nissan is looking to stateside production and procurement to avoid tariffs (should they arrive) and is now partnering with Ford to help in one critical way. The Wall Street Journal reports that a Ford plant in Kentucky will now be used by Nissan to manufacture batteries for its EVs. Though the report doesn't detail Nissan's production plans, expect that batteries for the Ariya and Leaf, Nissan's only two fully electric vehicles, will come from this Kentucky plant. In 2021, Ford built two factories in Kentucky as part of a larger $7 billion investment in production and electrification. The two plants were a joint venture with SK On, a battery maker in Korea that produces EV batteries and power storage solutions. The Wall Street Journal notes that weaker-than-expected demand for EVs caused one of the Kentucky facilities to sit dormant. That low demand eventually met with high production costs and looming tariffs, creating a slowdown in Ford's battery manufacturing. Nissan's choice to utilize this defunct factory helps it avoid tariffs on imported EV batteries, which promise to be a substantial additional cost to EV buyers that they are unlikely to tolerate. In Q1, Nissan reported a $4.5 billion loss and canceled a planned battery factory in Japan. SK On and Nissan already have a deal in place, too; in March, Nissan said SK On would provide batteries for electrified SUVs in production at its Canton, Mississippi, plant. It seems reasonable that this defunct Ford plant in Kentucky-that was built in partnership with SK On-will serve as the production point for SK On and Nissan's efforts. Details of the deal between SK On and Ford are unknown, but this development is significant for Ford. It either recoups losses by leasing the factory to Nissan or avoids any potential breach of contract with SK On as the factory sits dormant. If SK On owns and operates the factory, but Ford can't satisfy a production agreement, Nissan stepping in may ease Ford's accountability. Nissan continuously struggles to gain footing in the U.S. market despite making respectable SUVs and a great EV SUV. If this deal with SK On keeps Ariyas (and Leafs, maybe?) on its lots, EV buyers may give its vehicles a closer look. Many other automakers, like BMW, are in a holding pattern with electrified vehicles, so the time might be right for Nissan to gain market share. It's a tenuous time for Nissan. A spiked deal with Honda had many wondering if the brand would survive, and as EV demand wanes and tariffs loom on the horizon, Nissan must thread the needle on electrification to gain market share. Partnering with SK On to produce EV batteries domestically is smart, but whether it results in more sales remains to be seen. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Bloomberg
21-05-2025
- Automotive
- Bloomberg
Nissan in Talks to Buy Batteries in US from Ford-SK On Venture
Nissan Motor Co. is nearing a deal to procure electric vehicle batteries in the US from a joint venture between Ford Motor Co. and South Korea 's SK On, according to people familiar with the matter. The Japanese automaker wants to source batteries in the US in part to avoid President Donald Trump's tariffs, said the people, who asked not to be identified revealing internal deliberations. For Ford and SK On, a supply deal with Nissan would help boost production amid a slowdown in EV sales, they said.
Wall Street Journal
20-05-2025
- Automotive
- Wall Street Journal
In Latest EV Pullback, Ford to Share Battery Plant With Nissan
Ford Motor F -0.28%decrease; red down pointing triangle is pulling back more on its electric vehicle ambitions, by letting rival Nissan 7201 -0.44%decrease; red down pointing triangle use part of its flagship U.S. battery plant, according to people familiar with the plan. Ford made a big bet on electric vehicles in 2021, announcing two new battery plants in Kentucky as part of a bigger $7 billion investment. The plants are a joint venture with Korean battery maker SK On.
Korea Herald
09-05-2025
- Automotive
- Korea Herald
SK On increases global EV battery market share as Korean rivals slip
SK On emerged during the first quarter as the sole South Korean battery maker to increase its market share in the global EV battery market outside China, defying headwinds from fast-growing Chinese rivals. The company captured 10.6 percent of the global market between January and March, up from 9.9 percent a year earlier, overtaking Samsung SDI to become the world's No. 3 EV battery supplier, according to a report Friday from SNE Research. Battery usage in newly registered EVs reached 10.4 gigawatt-hours, marking a 35.5 percent jump from 7.7 GWh a year prior. The growth is largely attributed to increased sales of some models from Hyundai Motor, Kia, Mercedes-Benz and Volkswagen that are equipped with SK On's pouch batteries, the report said. Hyundai Motor's strong US EV sales played a key role, with SK On batteries powering its flagship models, including those under its luxury division, Genesis. In particular, the Ioniq 5, equipped with an SK battery, stood out with 8,611 units sold in the US in the first quarter — a 26 percent increase from a year earlier. SK On's partnership with Hyundai Motor Group is set to deepen with the construction of a joint battery plant in Bartow County, Georgia. The facility, slated to begin operations in early 2026, will supply batteries to Hyundai and Kia production sites in the region. By contrast, LG Energy Solution and Samsung SDI — the world's No. 2 and No. 4 EV battery suppliers — saw their market shares decline in the same period. LG Energy Solution's share slipped from 24.4 percent to 22.3 percent, despite a 15.3 percent increase in battery usage to 21.9 GWh. The firm underperformed compared to overall market growth, weighed down by slower sales of Tesla models equipped with its batteries. Samsung SDI's market share fell more sharply to 7.4 percent from 11.3 percent, amid growing competition from newly launched EV models that rival those using its battery systems. Meanwhile, leading Chinese battery makers, including CATL, BYD, Gotion and CALB continued to post robust gains. BYD, which is also the world's largest EV maker, saw battery usage surge 104.7 percent on-year, lifting its market share to 6.4 percent and underscoring its dual push in both car production and battery supply.
