LG Energy Solution, Ford, and Koç Holding have signed a non-binding Memorandum of Understanding to form a new joint venture to create one of Europe’s largest commercial electric vehicle (EV) battery cell facilities.
LGES said the plant would be built near Ankara, Turkey, and strengthen the foundation for Ford’s EVs in Europe.
The project is expected to break ground later this year, the statement said. Production is intended to start in 2026 with the three parties committing to at least 25GWh of annual production capacity. It could potentially expand to 45GWh.
Ford and LGES have worked together for over a decade, with LGES most recently supplying batteries from its plant in Poland – regarded as Europe’s biggest – for the Ford Mustang Mach-E and E-Transit.
Ford and Koç Holding have a relationship going back almost a century, according to LGES. It includes the Ford Otosan joint venture.
LGES claims the largest global battery manufacturing network, with facilities in six countries (Korea, US, China, Poland, Indonesia and Canada), with a total annual production capacity of 200GWh.
A surge in global demand means the company’s order backlog recorded KRW 385 trillion ($295 billion) at the end of 2022. LGES aims to expand its global production capacity to 300GWh by the end of this year.
Analysts said the battery plant was originally to be built with Korean battery maker SK On. But it decided to withdraw from the project, reportedly due to rising global interest rates and weaker EV demand in Europe.
Market watchers said this JV shows battery manufacturing players are willing to partner with competitors’ partners.
