SK On Establishes European Production System... Joint Battery Plant with US Ford in Turkey

SK On "Minimum 30GWh Operation from 2025"
"Over 70% of Ford Battery Volume Produced by 2030"

The American Ford F-150 equipped with the electric vehicle battery NCM9 (nickel content about 90%) made by SK On. (Photo by SK On)

[Asia Economy Reporter Moon Chaeseok] SK On has decided to build a joint electric vehicle battery factory in Turkey, following the United States, in collaboration with global automaker Ford.

On the 14th, SK On announced that it signed a tripartite memorandum of understanding (MOU) with Ford in the U.S. and local Turkish manufacturer 'Koc' to establish a joint venture for electric vehicle battery production in Turkey. Koc is the only Turkish company listed in Fortune's 'Global 500' manufacturing companies and has been producing commercial vehicles in Kocaeli Province, Turkey, since 1959 through a joint venture with Ford.

Location of the joint production corporation near Ankara, the capital of Turkey. (Source=SK On)

The new battery production plant is planned to be built near Ankara, the capital of Turkey. The factory will produce high-nickel NCM (Nickel-Cobalt-Manganese) batteries, with commercial production expected to start as early as 2025 at an annual capacity of 30 to 45 gigawatt-hours (GWh). The batteries produced will mainly be used in commercial vehicles manufactured by the Ford-Koc joint venture. The total investment is expected to reach trillions of Korean won.

According to SK On, this is the first time a joint factory is being built in Europe by a Korean company. While the three major Korean battery makers?LG Energy Solution, Samsung SDI, and SK On?have been establishing battery joint ventures with global automakers in the U.S., this marks the first joint venture factory in Europe.

SK On's plan to secure global production bases for electric vehicle batteries. (Data=SK On)

Ford plans to secure an annual battery capacity of 240 GWh by 2030. More than 70% of this capacity is expected to be supplied through collaboration with SK On. Ford has secured 140 GWh of battery capacity needed in North America through joint ventures with SK On in Kentucky and Tennessee (129 GWh) and SK On's second plant in Georgia (11 GWh). Ford plans to procure the remaining 100 GWh in Europe, China, and other regions, with 30 to 45 GWh coming from the joint venture plant in Turkey. In other words, Ford will produce 170 to 185 GWh, which is over 70% of its required battery volume, in collaboration with SK On.

SK On currently operates battery plants in South Korea (Seosan), the U.S. (Georgia), China (Changzhou, etc.), and Hungary (Kom?rom), with additional plants such as the second plant in Yancheng, China, and the Iv?ncsa plant in Hungary expected to begin operations before 2025. SK On has announced its goal to achieve a total production capacity of 220 GWh by 2025 and 500 GWh by 2030 through joint ventures and independent production entities, aiming to grow into a global battery company. As of the end of last year, SK On's cumulative order volume reached 1,600 GWh.

Stuart Rowley, President of Ford Europe, said, "This joint investment initiative is a prime example of leveraging strategic partnerships to strengthen our business," adding, "It will be the industry's best joint investment to elevate electric vehicle battery manufacturing and supply to the next level." SK On CEO Ji Dong-seop said, "We are pleased to continue our partnership in Europe following our collaboration with Ford through the U.S. battery joint venture 'BlueOvalSK,'" and added, "We will achieve successful joint ventures with excellent partners in Europe as well as in the U.S."

This content was produced with the assistance of AI translation services.