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Ford Motor Company, LG Energy Solution and Koç Holding have signed a non-binding memorandum of cooperation (MoU) to create a new joint venture – subject to final agreement by the parties involved – to build one of the largest cell facilities of electric commercial vehicle batteries in Europe near Ankara, Turkey, strengthening the foundation for Ford’s electric future in Europe.

The new joint venture will be located in an organized industrial zone in Başkent, near Ankara. The project is on track and is expected to start later this year. Production is slated to begin in 2026 with the three parties committing to at least 25 GWh of annual production capacity, which could potentially reach as much as 45 GWh.

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“Ford continues to strengthen its plans for electric vehicles as it ramps up production to become a leader in the electric vehicle revolution. We keep our commitment to produce batteries in the same region where we manufacture electric vehicles. The establishment of the new joint venture with LGES and Koç Holding will lay a solid foundation that is a fundamental component in building a prosperous electric vehicle future for Ford in Europe,” said Lisa Drake, vice president, Ford EV Industrialization.

This joint venture builds on Ford’s long-standing business relationships with both LGES and Koç Holding. Ford and LGES have been working together for more than a decade, with LGES most recently supplying batteries from its factory in Poland for the Ford Mustang Mach-E and E-Transit. Ford Motor Company and Koç Holding have had a strong relationship for nearly a century and include the successful Ford Otosan joint venture, which was established more than 60 years ago.

“Our long-standing business relationship with Ford is the result of our commitment to deliver products of unparalleled competitiveness, consistent production-level efficiencies and global operational expertise, made possible by the extensive knowledge we have accumulated through proactive investments in global markets,” said Youngsoo Kwon, CEO of LG Energy Solution. “Now, by joining forces with Ford and Koç in Turkey, we will bring our leading battery technology to further strengthen the transition to electric vehicles in Europe, thereby leading global initiatives for a more sustainable future.”

In a statement, Koç Holding said: “We are deeply saddened by the terrible devastation caused by the February 6 earthquake. As Koç Group, we mobilized all our resources for our country. We believe that major investments like this will play a key role in getting through this extremely difficult period. In this regard, we underline our determination to implement this investment with two global companies that will bring our country a significant global competitive advantage in the automotive industry. We extend our condolences to our nation and truly believe that we will overcome these difficult times with unity and solidarity.”

Ford’s Drake added: “As the leading commercial vehicle brand in Europe for the past eight years, we want to continue to provide our customers with the most efficient and innovative vehicles by supporting their business goals through Ford’s vehicle services and distribution activities. Pro. This new battery joint venture is a prime example of how we leverage our strategic business relationships to strengthen our business.”

By 2035, Ford will offer Europe an all-electric passenger car and van fleet and a new generation of zero-emission vehicles optimized for a connected world, offering customers ever-improving services and user experiences.

LGES has the largest global battery manufacturing network consisting of its own production facilities in six countries (Korea, USA, China, Poland, Indonesia and Canada) with a total annual production capacity of 200 GWh. Leveraging its stable production yields and efficient operations, LGES is committed to providing customers with the best value globally and accelerating the transition to clean energy through investments in Research & Development (R&D) of next-generation battery technologies. Thanks to the increase in global demand, the company’s backlog reached 385 trillion KRW at the end of 2022. LGES aims to expand its global production capacity to 300 GWh by the end of 2023.