🧠 Food for thought

Implications, context, and why it matters.

Japan gives SK On another path as EV demand cools

• A long slowdown in electric vehicle (EV) demand has pushed battery companies to look for other sources of growth, including the energy storage system (ESS) market 1.
• Japan’s automakers are known for tough safety and quality rules. A local office can help SK On build the trust needed for partnerships that often last for years 2.
• SK On already has a deal with Nissan, though it is not a Japan-based battery supply contract. SK On will supply U.S.-made batteries for Nissan’s next-generation EVs built at the Canton, Mississippi, plant from 2028 to 2033, which supports its technical standing 3.

Entering Japan also puts battery policy and grid demand in focus

• SK On is moving into a market where Japan is building its own battery supply chain, with up to US$2.4 billion set aside for local production projects 4.
• The step also fits a broader push by SK Group chairman Chey Tae-won to deepen economic ties between South Korea and Japan in batteries and semiconductors 2.
• Its focus on Japan’s ESS market suggests battery makers are looking beyond vehicles. They are applying battery technology to support grid stability as renewable energy use rises 2.