A new Turkish EV battery cell plant that supposes to be the biggest in Europe joined three big companies.
Ford, LG Energy Solution, and Koc Holding announced on Tuesday that they had signed a non-binding agreement to launch a joint venture in Turkey to build one of the largest electric vehicle battery cell plants in Europe.
The transaction was reached just two weeks after South Korean electric car manufacturer SK On, a division of SK Innovation Co Ltd, withdrew from the joint venture in which it was supposed to be a partner under a previous year’s agreement.
Koc Holding takes part in automotive manufacturing and distribution
Koc Holding is a Turkish conglomerate with operations in various sectors, including automotive manufacturing and distribution. While Koc Holding itself is not a major player in the electric vehicle (EV) battery industry, some of its subsidiaries have made investments in this field.
Ford Otosan is a joint venture between Ford and Koc Holding, and is one of the largest automotive manufacturers in Turkey. Ford Otosan announced an investment of $2.3 billion in a new factory in Turkey, which will produce batteries for Ford’s electric vehicles last year.
Koc Holding has a part in TUBITAK MRC. It is a research center in Turkey that is funded both by the government and Koc Holding. In 2021, TUBITAK MRC announced that it had developed a new lithium-ion battery technology that could improve the performance and safety of EV batteries.
Otokar is a subsidiary of Koc Holding that specializes in the production of buses and commercial vehicles. It announced that it had developed a new electric bus that uses a battery pack with a range of up to 400 km on a single charge.
While Koc Holding’s investments in EV batteries are not as significant as those of the other two partner companies in this venture, its involvement in the automotive industry through its subsidiaries positions it to benefit from the growing demand for electric vehicles and related technologies in Turkey and beyond.
Ford recognized the EV battery market long ago
Ford has made significant investments in electric vehicle (EV) batteries worldwide, as part of its strategy to transition to an all-electric future. In May 2021, Ford announced that it would invest $185 million in a new battery lab in Michigan, which will develop and test advanced battery systems for future Ford electric vehicles.
Previously the same year in April, Ford announced that it would form a joint venture with South Korean battery manufacturer SK Innovation to produce batteries for Ford’s electric vehicles. The joint venture will invest $5.6 billion in two new battery plants in the United States.
A year before, Ford announced that it would invest $100 million in a new battery assembly plant in Cologne, Germany, which will produce battery packs for the upcoming all-electric Ford Transit van.
In September 2020, Ford announced that it had invested $100 million in EV battery manufacturer Solid Power, which is developing solid-state battery technology for EVs. Just a couple of months before, Ford said it would invest $500 million in electric vehicle startup Rivian, which is developing electric pickup trucks and SUVs with advanced battery technology.
LG Energy Solution is a new EV battery player, but it’s the first on the team
LG Energy Solution is a major player in the electric vehicle (EV) battery industry and has made significant investments in this field worldwide. In just one year, 2021, LG Energy Solution made several huge investments in the field.
In December 2021, LG Energy Solution announced that it would invest $4.5 billion to build a new battery plant in the United States. The plant will produce batteries for electric vehicles and energy storage systems and is expected to create 2,500 new jobs.
Two months before, it announced that the company would invest $10 billion in EV batteries and related businesses by 2025. The investment will include expanding battery production capacity, developing new battery technologies, and establishing a recycling system for used batteries.
This came after LG Energy Solution in September 2021 announced that it would build a new battery plant in Indonesia, in partnership with Hyundai Motor Group. The plant will produce batteries for Hyundai’s electric vehicles and is expected to start operations this year.
LG Energy Solution already invested $1.8 billion in a new battery plant in South Korea. The plant will produce batteries for EVs and is expected to start operations in 2024.
In partnership with General Motors, LG Energy Solution invested $4.5 billion to build a new battery plant in the United States. The plant will produce batteries for GM’s electric vehicles.