Turkey’s Koc Holding has announced that it has revoked its earlier agreement with Ford and South Korean battery manufacturer LG Energy Solution to form a joint venture (JV) for the production of battery cells for commercial electric vehicles. Back in February 2023, the three companies signed a non-binding agreement to build one of Europe’s largest battery cell facilities focused on electric vehicles near the Turkish capital, Ankara.
“Timing not right for investment in battery cells”
“Given the current pace of electric vehicle adoption, the timing is not right for an investment in battery cells,” Koc Holding explained. “Ford and Koc Holding will continue to support the production of electric vehicles at the Ford Otosan plant in Kocaeli and will evaluate possible future investments in battery cells in line with the dynamics of the electric vehicle market.” LG Energy Solution too explained that the three companies abandoned the plan due to the current pace of consumer electrification. “LG Energy Solution and Ford are working together on a plan to support the production of battery cells from LG Energy Solution’s existing operations and expand the companies’ long-standing business relationship.”