Ford Motor Company, LG Energy Solution and Koç Holding signed a non-binding memorandum of understanding (MoU) to form a new joint venture subject to final agreement by all the parties to create one of Europe’s largest commercial electric vehicle battery cell facilities near Ankara, Turkey.

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

Ford and Koç Holding had originally signed a non-binding MoU with battery maker SK On to build the battery JV in Turkey. (Earlier post.) Yonhap in January reported that SK On was considering withdrawing from the project partnership in Turkey.

This new joint venture project builds on long-standing business relationships Ford has with both LGES and Koç Holding. Ford and LGES have worked together for more than a decade, with LGES most recently supplying batteries from its plant in Poland for the Ford Mustang Mach-E and E-Transit. Ford Motor Company and Koç Holding enjoy a strong relationship that stretches back almost a century and includes the successful Ford Otosan joint venture, established more than 60 years ago.

LGES has a global battery manufacturing network consisting of its manufacturing facilities in six countries (Korea, US, China, Poland, Indonesia, and Canada), with a total annual production capacity of 200GWh. Due to the surge in global demand, the company’s order backlog recorded KRW 385 trillion (US$300 billion) at the end of 2022. LGES aims to expand its global production capacity to 300GWh by the end of this year.