Ford announced on Tuesday it has signed a non-binding memorandum of understanding (MOU) with LG Energy Solutions and Koç Holding, forming a joint venture to build one of Europe’s largest commercial electric vehicle battery cell facilities in Ankara, Turkey.
The proposed facility is slated to begin construction later this year, with a targeted production start in 2026. According to Ford the plant will have an initial production capacity of 25GWh annually, but that figure could expand to 45GWh in the future.
Ford did not outline the estimated cost for the facility, or what type of batteries it will produce.
“Ford continues to ramp up our electric vehicle plans as we scale to be a leader in the electric vehicle revolution. We are delivering on the commitment to produce batteries in the same region where we build electric vehicles. Establishing the new joint venture with LGES and Koç Holding will lay a solid foundation that is fundamental to building a thriving electric vehicle future for Ford in Europe,” said Lisa Drake, vice president, Ford EV Industrialization.
Today’s announcement follows last week’s deal with China’s CATL in which Ford said it will spend $3.5 billion on a lithium iron phosphate (LFP) battery plant in Michigan, all part of the automaker’s efforts to increase EV production to 2 million unit globally by 2026.
It will be a rocky road to reach that point however, as Ford has explained their EV unit will not be profitable until that date. Ford’s European division has already felt the pinch where 3,800 jobs, or the equivalent of one in nine jobs were cut earlier this month as part of their efforts to cut costs amid their shift to electrification.