{"id":9493,"date":"2022-03-14T15:00:52","date_gmt":"2022-03-14T06:00:52","guid":{"rendered":"https:\/\/askinno.com\/global\/?p=9493"},"modified":"2022-03-14T15:50:34","modified_gmt":"2022-03-14T06:50:34","slug":"sk-on-ford-and-koc-signed-an-mou-to-create-a-joint-venture-for-battery-production-in-turkey","status":"publish","type":"post","link":"https:\/\/askinno.com\/global\/archives\/9493","title":{"rendered":"SK On, Ford and Ko\u00e7 signed an MOU to create a joint venture for battery production in Turkey"},"content":{"rendered":"

\u25a0 \u201cSK On-Ford battery alliance\u201d entered Europe to build a production base with a leading Turkish company after setting up its base in the U.S. <\/span><\/strong><\/p>\n

\u25a0 They are expected to produce 30-45 GWh annually beginning in 2025 on a site near Ankara <\/span><\/strong><\/p>\n

\u25a0 SK On became Korea\u2019s first, among the three leading battery suppliers in the country, to create a battery production joint venture in Europe with an automaker <\/span><\/strong><\/p>\n

\u25a0 Dong Seob Jee, CEO of SK On, said, \u201cWe will achieve successful joint ventures with great partners in Europe as well as in the United States.\u201d <\/span><\/strong><\/p>\n

\u25a0 Stuart Rowley, Chairman of Ford of Europe, said, \u201cOur partners SK On and Ko\u00e7 have a vision in what I believe will be an industry-leading joint venture.\u201d <\/span><\/strong><\/p>\n

\u25a0 Levent \u00c7ak\u0131ro\u011flu, CEO of Ko\u00e7, said, \u201cThe trust and commitment of our partner Ford and the deep-rooted experience of SK Innovation further solidify our confidence in this project.\u201d <\/span><\/strong><\/p>\n

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On March 14, SK On announced that it signed an MOU with Ford and Ko\u00e7 Holding to create a joint venture for electric vehicle (EV) battery production. Ko\u00e7 Holding is a leading Turkish company founded in 1926 and is the only one in Turkey on Fortune Global 500. By creating Ford Otosan in 1959 with Ford, the Turkish company has been manufacturing commercial vehicles (including business vans) in Kocaeli and others. Its annual capacity is 455,000 units.<\/span><\/p>\n

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The new battery plant will be located near Ankara, Turkey. The plant will produce high-nickel NCM (nickel, cobalt, manganese) battery and the production with an annual capacity of 30-45 GWh will begin as early as 2025. These batteries will be supplied to power mostly commercial vehicles. SK On is the first, among the three leading Korean battery suppliers, to work with an automaker and create a joint venture for large scale production in Europe.<\/span><\/p>\n

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SK On has established itself as a key partner and battery supplier to Ford. Especially, Ford recently said it will separate its electric vehicle business from its autos operations, accelerating its electrification plan, which heightens expectations for its cooperation with SK On<\/span><\/p>\n

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Ford plans to have 240 GWh of global battery capacity by 2030 and a fair amount of it will come from SK On Ford will source 140 GWh needed in North America from \u201cBlueOval SK\u201d, the joint venture it will form with SK On with plants in Tennessee and Kentucky, that has annual capacity of 129 GWh, and 11 GWh from SK On\u2019s second plant in Georgia.<\/span><\/p>\n

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The remaining 100 GWh will be sourced from Europe and China with 30-45 GWh coming from the new plant of the joint venture between SK On and Ko\u00e7, which amounts to in total more than 70% (170-185GWh) of Ford\u2019s planned global capacity of 240 GWh.<\/span><\/p>\n

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SK On is speeding up establishment of global production bases not only by creating joint ventures with external partners but also by building its own plants. The company is operating plants in Korea (Seosan), the U.S. (Georgia), China (Changzhou and more) and Hungary (Komarom). Its second plant in Yancheng, China and its plant in Ivancsa, Hungary will being their operation before 2025.<\/span><\/p>\n

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SK On aims at growing into a true global battery supplier with total capacity, coming from the joint ventures and its own production bases, of 220 GWh and 500 GWh by 2025 and 2030 respectively. \u201cSK On won cumulative orders of 1,600 GWh at the end of 2021 and is receiving increased orders from its customers,\u201d Dong Seob Jee, CEO of SK On, said in a recent interview with an internal channel while talking about the company\u2019s ambitious plan to become a global No.1 battery supplier. <\/span><\/p>\n

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The joint venture with Turkey is expected to grow Ford\u2019s presence in Europe as well as in the U.S. Ford was named as the No. 1 commercial vehicle brand across Europe for the 7th consecutive year in 2021. Ford Transit Custom became the best-selling total vehicle in the U.K. with 40,000 units sold in 2020.<\/span><\/p>\n

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\u201cThis proposed new battery joint venture is a prime example of how we are leveraging strategic partnerships to strengthen our business,\u201d said Stuart Rowley, Chairman of Ford of Europe. He continued, \u201cIt 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.\u201d<\/span><\/p>\n

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Ko\u00e7 Holding, another partner in the alliance, operates in a number of key sectors including energy, automotive, finance, and consumer durables. It has considerable influence on the Turkish market, which makes it the best joint venture partner in Europe. It employs about 110,000 people and recorded 346.7 billion lira in consolidated revenue in 2021.<\/span><\/p>\n

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Levent \u00c7ak\u0131ro\u011flu, CEO of Ko\u00e7, said, \u201cToday, 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.\u201d \u201cThis strategic move is not only a testament to Turkey\u2019s potential, but also brings our country a significant global competitive edge in battery production,\u201d he added. He continued, \u201cThe long-standing history and domestic leadership position of Ko\u00e7 Group in the auto industry, the trust and commitment of our partner Ford, and the deep-rooted experience of SK Innovation, further solidify our confidence in this project.\u201d<\/span><\/p>\n

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SK Innovation (the mother company of SK On) began its battery research in 1991 and has been recognized as the best company in high-nickel NCM battery technology which has the biggest impact on EVs\u2019 driving range and power. The energy company developed NCM811, a type of battery using an 8:1:1 ratio of nickel, cobalt and manganese, for the first time in the world in 2016. SK Innovation also successfully developed NCM9 batteries (that contain 90% nickel) which will be supplied to power Ford\u2019s F-150 Lightning.<\/span><\/p>\n

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\u201cIt is our great pleasure that SK On cooperates with Ford through BlueOval SK, the battery joint venture, as well as that we found the new partnership in Europe.\u201d Dong Seob Jee, CEO of SK On said. He added, \u201cWe will achieve successful joint ventures with great partners in Europe as well as in the United States.\u201d He continued, \u201cI hope this extended partnership will contribute to Ford\u2019s electrification strategy and by extension, to the growth of the EV industry and global carbon emission reduction.\u201d<\/span><\/p>\n

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SK On, Ford and Ko\u00e7 expect their battery joint ventures to provide benefits for commercial vehicle operators across Europe such as a saving in energy and operation. <\/span><\/p>\n

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Stuart Rowley said, \u201cI want to thank our partners SK On and Ko\u00e7 Holding for their vision in what I believe will be an industry-leading joint venture which will take the manufacture and supply of batteries for electric commercial vehicles to the next level.\u201d He added, \u201cI also thank the Turkish Government for continuing to support our electrification transformation.\u201d<\/span><\/p>\n

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[Graphics]<\/span><\/strong><\/p>\n

(Graphic 1) SK On’s plan to secure global battery production bases<\/span><\/p>\n

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(Graphic 2) SK On, Ford, and\u00a0Ko\u00e7’s joint venture will build a new EV battery plant near Ankara, Turkey<\/span><\/p>\n

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[Photos]<\/span><\/strong><\/p>\n

(Photo 1) SK Battery America (SKBA)’s 2nd battery plant is under construction in Georgia, USA<\/span><\/p>\n

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(Photo 2) A researcher shows a battery cell produced by SK On (SK Innovation)<\/span><\/p>\n

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(Photo 3,4) (Left) Ford’s F-150 equipped with SK battery NCM9 \/ (Right) NCM9 battery displayed inside SK Innovation’s booth at Interbattery 2021\u00a0<\/span><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u25a0 \u201cSK On-Ford battery alliance\u201d entered Europe to build a production base with a leading Turkish company after setting up its base in the U.S. \u25a0 They are expected to produce 30-45 GWh annually beginning in 2025 on a site near Ankara \u25a0 SK On became Korea\u2019s first, among the three leading battery suppliers in … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":9503,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4,8,644],"tags":[933,930,127,588,472,487,932,648,931],"class_list":["post-9493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporates","category-press-room","category-press-release","category-sk-on","tag-ankara","tag-battery-production","tag-europe","tag-ev-battery-market","tag-ford","tag-jv","tag-koc","tag-sk-on","tag-turkey"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/9493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=9493"}],"version-history":[{"count":5,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/9493\/revisions"}],"predecessor-version":[{"id":9508,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/9493\/revisions\/9508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/9503"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=9493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=9493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=9493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}