LGES, Ford to build joint battery plant in Turkey
LG Energy Solution manufacturing plant in Ochang, North Chungcheong Province. Korea Times file
By Lee Kyung-min
LG Energy Solution (LGES), Ford, and Koc Holding signed a non-binding memorandum of understanding (MOU) to form a new joint venture, in order to create one of Europe's largest commercial electric vehicle (EV) battery cell facilities near Ankara, Turkey, the firm said Wednesday.
The new joint venture will be located in an industrial zone in Baskent, near Ankara. The project is expected to break ground later this year.
Production is likely to start in 2026 with the three parties committing to at least 25 gigawatt hours (GWh) of annual production capacity, which could potentially expand up to 45 GWh.
“Ford continues to ramp up our electric vehicle plans as we seek to be a leader in the electric vehicle revolution,” said Lisa Drake, vice president of Ford EV Industrialization.
“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 Koc Holding will lay a solid foundation fundamental to building a thriving electric vehicle future for Ford in Europe.”
This joint venture builds on two long-standing business relationships Ford has with both LGES and Koc Holding.
Ford and LGES have worked together for over a decade, with LGES most recently supplying batteries from its plant in Poland for the Ford Mustang Mach-E and E-Transit.
Ford Motor Company and Koc Holding enjoy a strong relationship that stretches back almost a century and includes the successful Ford Otosan joint venture, now over 60 years old.
“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,” said LGES CEO Kwon Young-soo.
“Now 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.”
As Europe's leading commercial vehicle brand for the past eight years, Ford said it wants to continue providing its customers with the most efficient and innovative vehicles supporting its business goals.
“This new battery joint venture is a prime example of how we are leveraging our strategic business relationships to strengthen our business,” said Drake.
By 2035, Ford in Europe will offer an all-electric fleet of vans and passenger vehicles, a new generation of zero-emission vehicles, optimized for a connected world, offering customers truly outstanding, always-on services and user experiences.
LGES has the largest global battery manufacturing network consisting of its manufacturing facilities in six countries, including Korea, the U.S., China, Poland, Indonesia and Canada. It has a total annual production capacity of 200 GWh.