The joint venture between Ford, South Korea’s LG Energy Solution (LEGS), and Turkey’s Koc Holding, which aimed to establish a major EV battery cell facility near Ankara, Turkey, has come to an end. The three companies have announced the cancellation of the agreement after signing a non-binding agreement in February.
In a statement to the Public Disclosure Platform on Friday, Koc Holding expressed that the current pace of EV adoption rendered the timing inappropriate for a battery cell investment. Despite this setback, the statement affirmed Ford and Koc Holding’s commitment to supporting electric vehicle production at Ford Otosan’s Kocaeli plant. (via Automotive News)
The Ford Otosan joint venture, known for building Transit vans, is poised to start production of electric versions next year. Additionally, it is set to produce electric vans for Volkswagen as part of the industrial partnership between the two automakers.
The South Korean battery maker clarified that the decision to scrap the plan was mutually agreed upon due to the current pace of consumer electrification adoption. Despite this setback, LGES emphasized its ongoing collaboration with Ford on a plan to support battery cell production for specific EVs from its existing operations.
The companies intend to evaluate potential battery cell investments in the future, aligning with the dynamic trends of the electric vehicle market.
The cancellation of the joint venture comes against the backdrop of global economic uncertainties affecting the outlook for EV sales. LG Energy Solution, in October, had already warned of slowing revenue growth in 2024, aligning with other industry players expressing caution about potential impacts from rising interest rates and sluggish growth in major economies such as China and Europe.