South Korean battery giant SK On— owned by SK Innovation— has signed a memorandum of understanding (MOU) with Ford and Koç Holding to build a lithium-ion gigafactory in Turkey.
The new battery plant will have an annual capacity of 30-45GWh and will produce high-nickel NCM (nickel, cobalt, manganese) batteries as early as 2025.
SK On is the first of the three leading Korean battery suppliers to work with an automaker and create a joint venture for large scale production in Europe.
Turkish firm Koç Holding’s relationship with US vehicle OEM Ford dates back to 1959 when the pair created Ford Otosan company, which manufactures up to 455,000 commercial vehicles (including business vans) a year in Turkey.
Levent Çakıroğlu, CEO of Koç, said: “This strategic move is not only a testament to Turkey’s potential, but also brings our country a significant global competitive edge in battery production.
“The long-standing history and domestic leadership position of Koç Group in the auto industry, the trust and commitment of our partner Ford, and the deep-rooted experience of SK Innovation, further solidify our confidence in this project.”
Ford’s battery plans
Ford plans to establish 240GWh of battery capacity by 2030 sourced from US and global supply chains— including the newly announced Turkey facility.
Last October, Ford and SK Innovations announced plans to invest $11.4 billion in the US electric vehicle and battery sector— including three dedicated battery plants with a combined 129GWh capacity.
The remaining capacity will come from SK’s 11GWh plant in Georgia, US, and 100GWh sourced from Europe and China.
SK On global battery reach
SK On is establishing global production bases by creating joint ventures with external partners and building its own plants— the company is operating plants in Korea (Seosan), the US (Georgia), China (Changzhou and more) and Hungary (Komarom).
Its second plant in Yancheng, China and its plant in Ivancsa, Hungary are expected to be operational before 2025.
Last September, SK On announced it would invest 1.2 trillion won ($1 billion) in a new battery factory in China, as it looked to ramp up lithium-ion battery production to 200GWh in the next four years.
