LG Energy Solution, Korea’s leading electric vehicle (EV) battery maker, said Tuesday it is “in talks” with Ford Motor to build a battery plant in Turkiye.
The negotiation came as its local EV battery firm, SK On, said it is considering withdrawing a memorandum of understanding (MOU) with Ford Motor and their Turkish conglomerate Koc Holding A.S. for the plant.
If the talks with Ford go smoothly,LG Energy Solution is expected to sign an MOU with the U.S. carmaker in the coming weeks for the Turkiye project.
In March last year, Ford, SK On and Koc Holding signed the initial pact to produce EV battery cells near the capital city of Ankara and start production in 2025.
They have consulted since March to set up a joint venture for the plant with an annual capacity of 30-45 gigawatt hours (GWh).
But they haven’t reached any conclusion on the project amid rising interest rates and a global economic slowdown, according to SK On.
SK On is wholly owned by SK Innovation, a refining affiliate of SK Group, Korea’s second-biggest conglomerate by assets after Samsung Group.
But Ford will keep its partnership with SK On in other projects, including building two battery plants in the United States, as it seeks to produce 2 million EVs annually by the end of 2026 and diversify its battery suppliers, according to media reports. (Yonhap)