LG Energy Solution made progress in gaining a global presence. The South Korean battery maker announced a non-binding memorandum of understanding on February 21 with Ford and Turkish conglomerate Koc Holding. The trio will jointly build a battery plant in Turkey, aiming to start production in 2026.
The joint factory will be located in an industrial zone in Baskent, near Ankara, according to an announcement. The annual production capacity has been planned for at least 25GWh and can be expanded to 45GWh.
The companies said they plan to break ground later this year. The joint plant is expected to be one of Europe's largest commercial EV battery cell facilities.
LGES and Koc Holding have partnered with Ford separately for a while. Ford said it has worked with LGES for more than 10 years and the battery maker recently started supplying batteries for the Ford Mustang Mach-E and E-Transit from the plant in Poland. The automaker maintains a much longer business relationship with Koc Holding, including the Ford Otosan joint venture in Turkey.
Ford previously tapped SK On, another South Korean battery company, to build the Turkish plant together, but changed the partner eventually. It will keep collaborating with SK On on projects like building factories in the US and expanding an existing plant in Hungary, according to Bloomberg.
Lisa Drake, vice president for Ford EV Industrialization, said the new joint venture with LGES and Koc Holding will lay a solid foundation for the carmaker to scale up in the European EV market.
Ford intends to electrify all its vans and passenger vehicles in Europe by 2035, according to the company. The plan aligns with the European Union's rule to ban new gasoline and diesel car sales from 2035.
Data from LGES' financial report showed the global battery market will grow by 33% to 890GWh in 2023. The xEV battery market in North America is expected to increase by over 60% to 150GWh. The European market is estimated to grow more than 40% to 160GWh.
LGES is on track to expand globally in the coming years. Besides the joint plant in Turkey, the battery maker also plans to raise its Poland plant's capacity of pouch batteries from 70GWh to 90GWh this year.
The battery maker said it has built the world's largest battery manufacturing network with facilities in South Korea, the US, China, Poland, Indonesia and Canada. These production bases create an annual capacity of 200GWh. It aims to increase the number to 300GWh by the end of 2023.
