Ford, a U.S. automaker, will join hands with LG Energy Solutions to build an electric vehicle battery plant in Turkey instead of SK On, Bloomberg reported Tuesday.
According to multiple sources who requested anonymity, Ford and LG Energy Solutions plan to sign a memorandum of understanding (MOU) for Turkey's battery joint plant business at the end of this month or early next month.
Earlier in March last year, Ford signed a memorandum of understanding (MOU) with SK On and Turkiye manufacturer coach and set up a battery joint venture near the Turkish capital Ankara, and has been pushing for a joint venture to start commercial production at 30∼45 GWh (Gigawatt hour) as early as 2025.
Since then, the three companies have discussed detailed issues, but investment discussions have reportedly been slow. This is because the global fund market has shrunk sharply as the economic downturn begins in earnest and high-interest rates continue.
Ford chose LG Energy Solution as an alternative and proposed a battery joint plant. An official from LG Energy Solutions said, "Nothing has been decided yet regarding the establishment of a joint plant with Ford."
LG Energy Solutions has been strengthening cooperation with Ford. At Ford's request, the company decided to double its battery production line at its Polish plant.
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