SK On-Turkey battery plant
SK On mulls withdrawing battery plant deal in Turkey
SEOUL, Jan. 9 (Yonhap) -- South Korean battery maker SK On said Monday it is considering withdrawing an initial pact with Ford Motor Co. and their local partner Koc Holding A.S. to build a car battery plant in Turkey.
In March last year, the three companies signed a memorandum of understanding (MOU) to produce electric vehicle (EV) battery cells near the capital city of Ankara and start production in 2025.
"The company is reviewing the MOU as part of its selection and concentration strategy (when it comes to the EV battery business)," a company spokesman said over the phone.
The three parties have consulted since March to set up a joint venture for the plant with an annual capacity of 30-45 gigawatt hours (GWh). But they haven't reached any conclusion on the project amid rising interest rates and a global economic slowdown, SK On said.
In 2021, SK On, a wholly owned car battery unit of SK Innovation Co., announced a plan to invest US$11.4 billion with Ford Motor to build three battery plants in the United States, the world's most important automobile market.
The company currently has battery plants in the U.S., Hungary, China and South Korea.
SK Innovation is a refining affiliate of SK Group, South Korea's second-biggest conglomerate by assets after Samsung Group.
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