LG Energy Solution and Ford's Turkey Battery Joint Venture Plant Falls Through

LG Energy Solution and Ford Motor Company have withdrawn their plan to establish an electric vehicle battery joint venture in Turkey.

On the 11th, LG Energy Solution stated, "Considering the current pace of consumers' transition to electric vehicles, we mutually agreed that it is not an appropriate time to continue investing in the planned battery cell production facility in Turkey," adding, "LG Energy Solution, Ford, and Ko? have mutually terminated the non-binding tripartite memorandum of understanding (MOU) signed earlier this year."

Ko?, a major Turkish conglomerate that was promoting the establishment of the battery joint factory with LG Energy Solution and Ford, also announced through a disclosure on the same day that it is withdrawing the tripartite MOU for the joint venture establishment. In the disclosure, Ko? explained, "After reviewing the battery cell production investment in the Ankara region, Ford, LG Energy Solution, and Ko? Group judged that the current pace of electric vehicle transition is not suitable for battery cell investment, and thus cancel the MOU announced in February."

In February of this year, the three companies announced plans to build a battery factory with a capacity of about 25GWh in the Ba?kent area near Ankara, Turkey, aiming for mass production in 2026, and discussed expanding it to 45GWh in the future. The batteries produced there were scheduled to be supplied to electric commercial vehicles that Ford plans to launch in the European market.

Ford and Ko? have established the joint venture 'Ford Otosan' in Turkey, producing commercial vehicles with an annual capacity of 450,000 units, with a significant portion of the production sold in the European market.

Previously, Ford and Ko? announced in March last year the establishment of a joint venture for battery production in Turkey with SK On, but the plan was canceled in February this year.

LG Energy Solution stated that Ford's existing commercial electric vehicle plans will proceed as planned. LG Energy Solution said, "LG Energy Solution will supply battery cells for the same commercial electric vehicle models from existing production facilities, and the two companies will continue to expand their long-term business relationship."