A battery manufacturing plant, SK Battery America, under construction in Georgia, the U.S. Courtesy of SK On

By Lee Kyung-min

SK On, the wholly owned subsidiary of SK Innovation, a refiner, has signed a memorandum of understanding (MOU) with Ford Motor, a U.S. automobile manufacturer, and Koc Holdings, the largest industrial conglomerate in Turkey to create a joint venture for electric vehicle (EV) battery production, the firm said Tuesday.

The envisioned battery plant will be set up near Ankara, Turkey. It will produce high-nickel batteries NCM batteries composed of lithium, nickel, cobalt and manganese. Its annual production capacity of between 30 and 45 GWh will begin as early as 2025.

SK On is the first among the three leading Korean battery suppliers ― LG Energy Solution and Samsung SDI ― to work with an automaker and create a joint venture for large-scale production in Europe.

The joint venture is expected to bolster Ford's presence in Europe and the United States. Ford was named as the No. 1 commercial vehicle brand across Europe for the seventh consecutive year in 2021. Ford Transit Custom became the best-selling vehicle in the U.K. with 40,000 units sold in 2020.

Stuart Rowley, Chairman of Ford of Europe, said the proposed new battery joint venture is a prime example of how the firm is leveraging strategic partnerships to strengthen the business.

"It is also the first in a number of significant electrification and commercial vehicle announcements we will make this year as part of the ongoing redesign of our operations to create a leaner, stronger and sustainable all-electric Ford business in Europe."

The sentiment is echoed by Koc Holdings CEO Levent Cak?ro?lu. "Today, we are very excited to announce the signing of a non-binding MOU to look at a possible joint venture as a significant step for vertical integration in the electrified future of the auto industry," he said.

"This strategic move is not only a testament to Turkey's potential, but also brings our country a significant global competitive edge in battery production," he added.