American automaker Ford announced on February 21 that it had inked a non-binding memorandum of understanding (MoU) with LG Energy Solution and Koç Holding for a new joint venture to develop one of Europe’s biggest commercial EV battery cell plants.
The move is a significant part of Ford’s plan to expand its EV efforts in Europe.
“Ford continues to ramp up our electric vehicle plans as we scale to be a leader in the electric vehicle revolution. We are delivering on the commitment to produce batteries in the same region where we build electric vehicles. 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.”
Lisa Drake, Ford EV Industrialization VP
About the project
The companies plan to build the EV battery cell plant in an industrial zone in Başkent, near Ankara.
As for the schedule, the companies expect to start construction at the site by the end of 2023. Meanwhile, the three parties have decided to start producing batteries in 2026 with a minimum 25 GWh annual production capacity and a maximum of 45 GWh capacity.
Long-standing partnership
Ford has already established a long-standing partnership with LGES and Koç Holding. LGES has supplied EV batteries for Ford plants for over a decade now. Meanwhile, its partnership with Koç Holding started about a century now, involving the Ford Otosan project.
“Our long-time business relationship with Ford is the result of our commitment to deliver unmatched product competitiveness, stable yields, and global operational expertise, made possible by our extensive knowledge accumulated through pre-emptive investments in global markets.”
Youngsoo Kwon, LG Energy Solution CEO
Notably, Ford targets 2035 to have a 100% electric fleet and innovative green vehicles in Europe. That said, this joint venture will surely aid its electrification efforts and strongly compete with rival automakers in the highly competitive EV market.
“As Europe’s leading commercial vehicle brand for the past eight years, we want to continue providing our customers with the most efficient and innovative vehicles supporting their business goals through our Ford Pro vehicle services and distribution business. This new battery joint venture is a prime example of how we are leveraging our strategic business relationships to strengthen our business.”
Lisa Drake, Ford EV Industrialization VP
