The three parties have agreed to a minimum of 25GWh of annual production capacity at the Turkish EV battery plant, which could potentially expand up to 45GWh
Ford Motor, LGES, and Koç sign MoU for EV battery plant in Turkey. (Credit: andreas160578 from Pixabay)
South Korean battery manufacturer LG Energy Solution (LGES), Ford Motor, and Turkish conglomerate Koç have inked a non-binding memorandum of understanding (MoU) to create a joint venture (JV) for developing a commercial electric vehicle (EV) battery facility in Turkey.
The JV is subject to final agreements by all three partners.
To be located in an organised industrial zone in Başkent, near Ankara, the electric battery facility is expected to break ground later this year.
According to the three companies, the Turkish EV battery facility is expected to begin production in 2026.
The three parties have agreed to a minimum of 25 gigawatt hours (GWh) of annual production capacity at the EV battery plant, which could potentially expand up to 45GWh.
LGES CEO Youngsoo Kwon said: “Our long-time business relationship with Ford is the result of our commitment to deliver unmatched product competitiveness, stable yields, and global operational expertise, made possible by our extensive knowledge accumulated through pre-emptive investments in global markets.
“Now joining forces with Ford and Koç in Turkey, we will bring in our leading battery technology to further boost the EV transition in Europe, thereby leading the global initiatives for a more sustainable future.”
The EV battery production facility is expected to support Ford Motor’s target of producing more than two million EVs worldwide by 2026.
Ford Motor is expected to deliver an all-electric fleet of vans and passenger vehicles in Europe by 2035.
Ford EV industrialisation vice president Lisa Drake said: “Ford continues to ramp up our electric vehicle plans as we scale to be a leader in the electric vehicle revolution.
“We are delivering on the commitment to produce batteries in the same region where we build electric vehicles. Establishing the new joint venture with LGES and Koç Holding will lay a solid foundation that is fundamental to building a thriving electric vehicle future for Ford in Europe.”
In March 2022, Ford Motor signed a MoU with South Korean battery maker SK On and Koç for the Turkish EV battery facility. Earlier this month, the companies were terminated the agreement following the pull out of SK On, reported Reuters.