According to Korean reports, Ford is in talks with South Korean electric vehicle (EV) battery maker LG Energy Solution (LGES) to replace SK On Company as a partner in its planned battery cell plant in Turkey.
This followed recent reports SK On withdrew from its agreement with Ford and Turkey’s Koc Holding are jointly investing $3.2 billion in an electric vehicle (EV) battery plant near Ankara, citing rising interest rates and deteriorating financing conditions
Ford wanted to set up a joint plant in the country to supply battery cells for its electric vehicles sold across Europe. The agreement with SK On envisaged the commissioning of a factory in 2025 with an initial production capacity of up to 45 gigawatt hours (GWh) per year.
Allowing LGES to replace them in Turkey would be a major setback for SK On, which already has a strategic joint venture with Ford, BlueOval-SK, which is building two major EV battery plants in the US.
It was also reported last month that Ford is in talks with Contemporary Amperex Technology Company (CATL) to supply battery cells for the US.
Reports citing industry sources in Seoul indicated that Ford and LGES should sign a memorandum of understanding (MoU) by next month. The move underscored the need for vehicle manufacturers to work with companies that have both leading technology and strong financial backing.