Ford, LG Energy to build Turkey EV battery plant for Europe

The JV plant near Ankara is set to manufacture at least 25 GWh; the production capacity could expand to 45 GWh

Ford Otosan, the company's joint venture with Turkish investment holding company Koç Holding, produces Ford electric van E-Transits at the JV's plant in Kocaeli, Turkey (Courtesy of Ford)
Ford Otosan, the company's joint venture with Turkish investment holding company Koç Holding, produces Ford electric van E-Transits at the JV's plant in Kocaeli, Turkey (Courtesy of Ford)
Hyung-Kyu Kim 2
Feb 22, 2023 (Gmt+09:00) khk@hankyung.com
Batteries

US automaker Ford Motor Co. and South Korean battery manufacturer LG Energy Solution Ltd. are targeting the electric commercial vehicle sector in Europe, the world’s second-largest EV market, by building a cell plant in Turkey with a local partner.

Ford, LG Energy and Turkish investment holding company Koç Holding AS said they agreed to establish a joint venture to produce battery cells for electric commercial vehicles in Başkent, near Ankara.

The three companies are scheduled to break ground on the factory later this year with an aim to start production in 2026. The plant is set to manufacture at least 25 gigawatt-hours (GWh) a year and the capacity could be expanded to up to 45 GWh.

“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,” said Lisa Drake, Ford EV Industrialization vice president, in a statement on Tuesday.

Ford, the leading commercial vehicle brand in Europe for the last eight years, plans to offer an all-electric fleet of vans and passenger vehicles, as well as new zero-emission vehicles in the region by 2035.

Last year, the company unveiled a plan to introduce four new electric commercial vehicles and three electric passenger vehicles in Europe by 2024.

The US carmaker is already producing some 450,000 commercial vehicles a year from Ford Otosan, its JV with Koç in Turkey formed in 1959. The JV, which accounts for 45% of Turkish automobile production and 41% of exports, ships many of its products to Europe.

LG ENERGY TARGETS ELECTRIC COMMERCIAL VEHICLE MARKET

LG Energy, the world’s second-largest EV battery maker, aims to expand its presence in the European electric commercial vehicle market through the Turkish project.

The South Korean company, Ford’s longtime partner, in July 2022 announced a plan to double capacity of its Poland factory to meet growing demand for Ford’s popular electric commercial vehicle E-Transit and electric sedan Mustang Mach-E in Europe. The capacity will be increased gradually further.

“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,” LG Energy CEO Kwon Youngsoo said.

Last month, the company inked a supply deal estimated up to $3.3 billion for Europe and North America to expand its presence in the electric commercial vehicle sector with high growth potential.

LG Energy plans to ramp up investment by 50% this year compared with last year to increase its annual global battery production capacity to 300 GWh by the end of 2023 from the current 200 GWh.

The company with an order backlog of 385 trillion won ($295 billion) as of end-2022 aims to raise sales by up to 30% this year.

Write to Hyung-Kyu Kim at khk@hankyung.com

Jongwoo Cheon edited this article.

LG Energy to raise capex by 50% in bet on strong EV growth

LG Energy to raise capex by 50% in bet on strong EV growth

(Courtesy of LG Energy Solution) LG Energy Solution Ltd., the world’s second-largest electric vehicle battery maker, plans to ramp up capital expenditure by more than half this year as it aims to raise sales by 30% after posting record revenue in 2022, expecting EV demand growth to contin

LG Energy inks $3.3 bn ECV battery deal for N.America, Europe

LG Energy inks $3.3 bn ECV battery deal for N.America, Europe

LG Energy’s Head of OTS Marketing Department Pahk Injae (from left), VP & Head of Marketing Center Oh Yoo-Seong, President of Advanced Automotive Battery Division Kim Dong-Myung, FEPS CCO Nils Martens, CTO Jan Kuiken and SVP Market Development & Communications Marco Piesik clap at a

Korea's SK On scraps $3.2 bn Turkey EV battery factory plan

Korea's SK On scraps $3.2 bn Turkey EV battery factory plan

Location of a battery plant that SK On, Ford and Koç had planned to set up in Turkey. SK On scrapped the plan (Courtesy of SK On) SK On Co., the world’s No. 5 electric vehicle battery maker, dropped a plan to build a 4 trillion won ($3.2 billion) plant in Turkey as higher interest

Ford in talks with LG Energy for Turkey EV battery plant

Ford in talks with LG Energy for Turkey EV battery plant

The Ford Mustang Mach-E equipped with LG Energy Solution's battery (Captured from Ford's website) Ford Motor Co. is in talks with LG Energy Solution Ltd., the world’s second-largest electric vehicle battery maker, to build a cell factory in Turkey after withdrawing from a deal with South

LG Energy to double Ford battery pack production line in Poland

LG Energy to double Ford battery pack production line in Poland

Mustang Mach-E is one of the EVs manufactured by Ford Motor Company LG Energy Solution Ltd., SK Innovation Co., and other South Korean companies are poised to strengthen their business ties with Michigan-based Ford Motor Company in an effort to cement their footholds in North America. LG E

SK On, Ford to set up battery JV in Turkey for Europe

SK On, Ford to set up battery JV in Turkey for Europe

(Courtesy of Ford) South Korean battery maker SK On Co. and Ford Motor Co. will set up a joint venture to produce electric vehicle batteries in Turkey with a local company as the US automaker plans to launch new EVs in Europe. SK On, the world’s No. 5 battery maker, announced on Mond