LG Energy Solution, Ford scrap Turkey EV battery factory plan

The Korean battery maker said Saturday that the three revoked the non-binding deal they signed in February to build a plant in Baskent, a city near Turkey's capital, Ankara, after reaching an agreement that it is not the "appropriate time."

LG Energy Solution's battery manufacturing plant in Poland [LG ENERGY SOLUTION]

LG Energy Solution scrapped plans to build a joint EV battery plant with Ford and Koc Holding in Turkey amid slowing demand.

The Korean battery maker said Saturday that the three revoked the non-binding deal they signed in February to build a plant in Baskent, a city near Turkey's capital, Ankara, after reaching an agreement that it is not the "appropriate time."

The factory was to have an annual production capacity of 45 gigawatt-hours — enough to make 500,000 EVs. The construction was scheduled to start as early as the end of the year to start production in 2026.

The total investment is reported to be around 3 to 4 trillion won ($2.3 to $3.1 billion), though the companies did not confirm the numbers.

"LG Energy Solution and Ford are working together on a plan to support battery cell production for this EV from LG Energy Solution's existing operations, extending the companies' long-standing business relationship," LG Energy Solution said in a statement.

LG Energy Solution's relationship with the U.S. automaker started in 2011 when it started supplying batteries for Focus Electric, Ford's first EV.

LG's batteries are currently used in Ford Mustang's Mach-E SUVs and E-Transit vans. The Korean battery maker recently doubled its capacity at the Poland plant to increase supplies to Ford.

Meanwhile, LG Energy Solution was the second Korean company Ford and Koc considered for the Turkey plant. The plan with SK On also fell through in February.

BY SARAH CHEA [chea.sarah@joongang.co.kr]