Rivals No More? Nissan and Ford’s Battery Pact

Nissan partners with BlueOval SK for US-made EV batteries, signaling a new era of cross-brand alliances and domestic supply chain dominance.

25 Mar 2025

Nissan has signed a long-term battery supply agreement with BlueOval SK, the U.S.-based joint venture between Ford Motor and South Korea’s SK On, as automakers seek more secure and subsidy-eligible electric vehicle supply chains.

Announced in May, the deal will give Nissan access to 100 gigawatt-hours of lithium-ion batteries produced at BlueOval SK’s plants in Kentucky and Tennessee through 2033. The Japanese carmaker aims to power millions of EVs across North America with locally sourced components, positioning itself to meet the U.S. Inflation Reduction Act’s content requirements and avoid import tariffs.

The agreement marks a notable shift in strategy for both companies. Nissan, once an early EV pioneer, is ramping up U.S. manufacturing, including a $500mn investment to retool its Canton, Mississippi plant. For BlueOval SK, initially created to support Ford’s EV plans, the partnership helps fill excess capacity amid uncertain demand projections.

“This is a savvy pivot for both parties,” said Margaret Liao, an analyst at AutoVector Intelligence. “It reflects a new mindset where legacy boundaries take a backseat to innovation, compliance, and resilience.”

The U.S. Department of Energy has extended a $9.6bn loan to BlueOval SK to support its battery operations. The joint venture’s ability to attract external customers could help justify that public backing while reinforcing domestic supply resilience.

The partnership also signals growing openness among rival manufacturers to share resources in order to meet regulatory and market demands. While labor unions have raised questions about employment conditions at joint venture facilities, industry observers say such cross-brand cooperation is likely to accelerate.

Nissan’s access to domestic batteries gives it a firmer foothold in the U.S. market, where stricter emissions rules and consumer incentives are driving demand for electric models. For BlueOval SK, securing third-party clients may prove crucial to the viability of its multi-billion-dollar factory projects.

The arrangement may offer a glimpse into the evolving dynamics of the EV sector, where traditional competition is giving way to more pragmatic alliances focused on survival and scale.