LG Energy Solution, the American automobile manufacturer Ford, and Turkish industrial conglomerate Koc Holding signed a non-binding Memorandum of Understanding (MoU) to form a new joint venture to create one of Europe's largest commercial electric vehicle battery cell facilities in Türkiye, the companies announced on Tuesday.
The new joint venture, which will be located in an organized industrial zone near Ankara, is expected to break ground later this year, with battery cell production set to begin in 2026.
The three parties committed to at least 25 gigawatt-hours (GWh) of annual production capacity, which could potentially expand up to 45 GWh.
By 2035, Ford in Europe is on track to offer an all-electric fleet of vans and passenger vehicles.
'Establishing the new joint venture with LGES and Koc Holding will lay a solid foundation that is fundamental to building a thriving electric vehicle future for Ford in Europe,' said Lisa Drake, vice president of Ford EV Industrialization.
The automobile manufacturer has a long-standing business relationship with LG and Koc Holding.
Ford and LG worked together for over a decade, with LG most recently supplying batteries from its plant in Poland for the Ford Mustang Mach-E and E-Transit.
Ford and Koc Holding have a partnership that stretches back almost a century and includes the successful Ford Otosan joint venture, now over 60 years old.
'By joining forces with Ford and Koc 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,' said Youngsoo Kwon, CEO of LG Energy Solution.
LG Energy Solution, which has the largest global battery manufacturing network in the world, currently has a total annual production capacity of 200 GWh.
The company plans to increase capacity to 300 GWh by the end of the year.
(Anadolu Agency, February 22, 2023)
