A three way partnership that includes Ford, LG Power Options and Turkey conglomerate Koç Holdings was set to construct battery cells within the nation’s capital metropolis, although new stories present that the settlement has been revoked.
Earlier this yr, Ford signed a memo of understanding with the opposite events construct a battery cell manufacturing facility in Ankara, Turkey. Nonetheless, Koç Holdings mentioned on Friday that it revoked the settlement with Ford and LG, citing the “tempo of electrical automobile (EV) adoption,” Automotive Information Europe stories.
“Contemplating the present tempo of electrical automobile adoption, the timing will not be applicable for a battery cell funding,” Koç Holdings mentioned throughout a press release to the Public Disclosure Platform.
“Ford and Koc Holding will stay dedicated to assist electrical automobile manufacturing at Ford Otosan’s Kocaeli plant and can consider potential battery cell investments sooner or later consistent with the dynamics of the electrical automobile market,” the corporate added.
Ford to postpone ~$12 billion in EV funding
Manufacturing on the Ankara plant was initially anticipated to start in 2026, as Ford wrote in a press launch earlier this yr. Annual manufacturing capability was deliberate to start out at 25 GWh, and the corporate mentioned it would ultimately broaden that to 45 GWh.
Ford presently receives Mustang Mach-E and E-Transit batteries from LG’s Poland plant. Final month, LG warned that it expects its income progress to decelerate in 2024 amidst continued situations of financial uncertainty and diminished EV gross sales forecasts from some automakers.
“LG Power Answer and Ford are working collectively on a plan to assist battery cell manufacturing for this EV from LG Power Answer’s present operations, extending the businesses’ long-standing enterprise relationship,” LG mentioned in a press release.
LG additionally has battery provide partnerships with different automakers, together with Tesla and Toyota, and the corporate not too long ago introduced a shift at its manufacturing facility in Arizona.
The canceled cell manufacturing plans in Turkey comply with pricey United Auto Employees (UAW) strikes, and after former Ford CEO and present Hertz CEO Mark Fields acknowledged in current weeks that he thinks the business is going through the “powerful a part of mass [EV] adoption.”
It additionally comes after Ford struggled with batteries earlier this yr. In February, Ford introduced plans to halt F-150 Lightning manufacturing attributable to a battery concern that brought on one unit to catch fireplace throughout a top quality test.
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