Ford and Koç Holding signed an agreement with LG Energy Solution for the electric vehicle battery cell factory to be established in Ankara.
The expected change took place in the battery cell factory to be established in Turkey by the American automotive giant Ford and its business partner Koç Holding. Announced in March 2022 with the partnership of South Korean SK On, the production facility gained a new partner after this technology supplier withdrew from the partnership.
Ford Motor Company published a statement on its official website on the subject. It announced that it has signed a non-binding memorandum of understanding with LG Energy Solution for the lithium-ion battery cell production facility. The plant will take place in Ankara Başkent OSB. The facility will shortly resume its formal construction with the Korean corporate partner.
LG is the second-largest lithium-ion battery manufacturer in the world which previously made battery factory investments in the USA with Ford. The company plans to start the production of more affordable LFP cells soon. Additionally, the company also produces high-energy density battery cells with NMC and NCA cathodes. Cell types will be available in the facility in three years.
First Phase in 2026, Second Phase in 2029
The first phase of the factory investment will be completed in 2026. According to Ford’s statement, the annual battery cell production capacity in the first phase will be 25 GWh. With the commissioning of the second phase in 2029, the total capacity of the Ford-LG-Koç joint plant will reach 45 GWh.
Just like Ford, Koç Holding has been collaborating with LG for a long time. In three years, Koç-Ford Otosan will be able to cease importing cells and build entirely domestic battery packs. The company uses cells from LG’s 70 GWh facility in Poland for E-Transit.
LG has been producing battery cells in a total of six countries. It includes the USA, South Korea, China, Poland, Indonesia, and Canada. The company will add Turkey to its portfolio as the seventh country. The battery giant has a total production capacity of around 200 GWh as of the end of 2022. The company wants to continue to be among the largest in the world in its field. They target to have a capacity of 300 GWh and 520 GWh by the end of 2023 and 2025 respectively.
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