Nissan eyes U.S. battery deal to keep EV rollout on track

Nissan is taking a different route to navigate some of the challenges associated with the tariffs—powering up a dormant Ford factory to charge up a key component of its comeback strategy.

The details: The Japanese automaker—which is in the thick of a massive turnaround—is nearing a deal to procure batteries from Ford's joint venture with SK On at its Kentucky battery plant, first reported by the Wall Street Journal. The move helps Nissan avoid President Trump's 25% tariffs on imported auto parts.

• Reports don't specify which Nissan vehicles will be equipped with batteries built at the facility—but the only electric vehicles currently in Nissan's product portfolio are the Ariya and an all-new Leaf.

• Nissan is simultaneously adjusting its U.S. EV timeline, pausing development of two battery-powered sedans while expanding its electric lineup to five vehicles that prioritize crossover SUVs over sedans to match market demand.

• In March, Nissan announced that it had entered into a battery supply agreement with SK On, a leading global battery manufacturer—which will likely have some ties to the dormant Ford facility.

News of Nissan's potential battery deal comes nearly two weeks after the company announced that it was canceling a planned $1.1 billion LFP battery plant in Kitakyushu, Fukuoka Prefecture as part of the company's aggressive cost cutting measures.

Between the lines: Given Nissan's current business dynamics, cost-cutting is a top priority in all facets of the company's operations, all while working to ensure that it's building and aligning its products to fit market demand in its key segments.

• Nissan has told suppliers to stick to previously agreed prices, stating it was "not obliged" to bear tariff costs, though it offered limited support for up to four weeks.

• Nissan is considering selling its headquarters in Yokohama, south of Tokyo, which is estimated to be worth over 100 billion yen ($698 million U.S.)—as a part of its cost-cutting measures.

• In early May, Nissan announced it would eliminate 11,000 more jobs and close 7 of its 17 global factories, as part of its aggressive efforts to turn the company's operations around.

Bottom line: The move to revive a Ford battery plant aligns with Nissan's broader survival strategy: cut costs, localize EV supply chains, and re-anchor its manufacturing closer to key markets. The Kentucky plant provides the automaker with a lifeline to sustain its EV ambitions without derailing the comeback plan.

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