Ford downgrades battery plans in the USA, cancels plant in Turkey

Ford is significantly scaling back plans for its LFP battery cell factory in the USA. In Turkey, meanwhile, the plan to produce battery cells for commercial vehicles is being put on hold. First to the USA, where the LFP cell factory in Marshall in the US state of Michigan announced in February will be significantly smaller than previously planned. According to Ford, the factory will only produce 20 GWh per year instead of 35 GWh. As a result, only 1,700 jobs will be created there instead of the previously planned 2,500. The planned start of production in 2026 will not change.

Meanwhile, it is now also clear that the battery cell plant for electric commercial vehicles planned by Ford together with LG Energy Solution and Koç Holding in Turkey will not be realized, at least for the time being. According to a statement from Koç, it has been decided that “considering the current pace of electric vehicle adoption, the timing is not appropriate for a battery cell investment” and the letter of intent for the plant signed in February has been revoked.

Future investments in the production of battery cells are to be reviewed “in line with the dynamics of the electric vehicle market”. The Korea Economic Daily had previously reported that LG Energy Solution was considering delaying the ground-breaking ceremony for its battery cell factory with Ford in Turkey, originally planned for 2023. The project is now completely on hold. Ford had already officially announced at the end of October that it was postponing some of its planned multi-billion investments in new production capacities for electric vehicles and batteries. This also applies to a planned second battery factory on a new campus in Kentucky.

For the moment, the companies will continue their collaboration, however holding back on any further investment for battery production capacities, as LG Energy Solution wrote in a statement: “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.”

ford.com (Michigan), koc.com.tr, reuters.com (both Turkey)