Nissan ditches longtime battery supplier AESC for next-gen EVs
Nissan could switch battery suppliers for its next-gen, U.S.-made electric vehicles.
For more than a decade, AESC in Japan supplied the batteries for America’s first affordable and mass-produced electric vehicle, the Nissan Leaf.
Nissan is switching suppliers to power its next generation of U.S.-made electric vehicles starting in 2028.
South Korean battery giant SK On is reportedly a favorite to land the business, according to January media reports in Japan.
In 2028, Nissan Motor Corp. plans to begin production of four battery-powered models at its Canton, Miss., factory that builds the Frontier pickup and Altima sedan.
Officials from Nissan, SK On and AESC declined to comment.
A person with knowledge of the situation said negotiations are underway and that Nissan has not made a final decision.
Nissan’s potential merger with Honda hangs over any battery supply agreement. Honda has announced battery investments in the U.S. and Canada.
The person who asked not to be identified discussing internal matters, said :
If things go ahead with Honda, it probably does not make sense to have two or three other players in the mix,
Cost, tech, geopolitics at play
The person said AESC could not assure Nissan that its batteries would comply with sourcing rules under the U.S. Inflation Reduction Act. That would make Nissan EVs with AESC batteries ineligible for the $7,500 federal tax credit.
The source said, referring to the term,
Nissan requires [battery suppliers] to guarantee that there will be no FEOC issue,
“foreign entity of concern,” which includes companies in — and in some cases subsidiaries owned or controlled by — China, Iran, North Korea or Russia.
EVs that contain battery components or critical minerals sourced from a foreign entity of concern are ineligible to receive the tax credit, which the Trump administration has proposed eliminating. The ban went into effect in 2024 for components and in 2025 for critical minerals.
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Nissan ditches longtime battery supplier AESC for next-gen EVs, source
