The U.S. carmaker Ford is to partner with Seoul-based LG Energy Solution Ltd. to build a new battery plant in Türkiye after dropping a deal with another South Korean company, SK On Co., a Bloomberg report said Tuesday, citing sources with knowledge on the issue.
The move came as the U.S. carmaker seeks to speed up the shift to clean cars and diversify its battery suppliers.
Ford and LG Energy Solution plan to sign a memorandum of understanding within the coming weeks, probably in late January or early February, according to two people who spoke to Bloomberg.
The Turkish plant was projected to open as soon as 2025 with an annual capacity of 30 to 45 gigawatt hours, according to an initial accord from March last year between Ford, SK On and Turkish conglomerate Koç Holding.
In an earlier response to Bloomberg News, SK On said it had not decided whether to stop negotiations with Ford on setting up the joint venture in Türkiye.
Reports previously said Ford had scrapped its plan for the Türkiye plant, not that the company was changing partners.
A spokesperson for Ford said the battery project is on track.
LG Energy Solution declined to comment.
The U.S. carmaker, meanwhile, will continue to work with SK On, on other projects, including building two plants in the United States and increasing capacity at a factory in Hungary.
Ford is accelerating electric vehicle (EV) and battery production, including its first all-new assembly plant in a half-century alongside a new SK On battery plant in the U.S. state of Tennessee.
SK On makes batteries for Ford’s electric F-150 Lightning pickup produced in Michigan while LG supplies the batteries that power the Mustang Mach-E the automaker manufacturers in Mexico.
