Koç Holding: Letter of intent with Ford and SKO is in effect

Koç Holding issued a statement despite the news that South Korean SKO had withdrawn from the letter of intent they previously signed with Ford for the electric battery investment. The statement stated that the letter is in effect.

Koç Holding stated that the non-binding letter of intent signed with Ford and the South Korean company SKO is in effect, and that alternatives are being evaluated in battery investment.

In the statement made by the Holding to the Public Disclosure Platform (KAP), it was stated that the non-exclusive letter of intent signed in the middle of Koç, Ford and SKO is in effect, and that there is no random change in Ford’s approach towards making battery investments in Turkey with Koç. In this context, the Holding said that all alternatives for the realization of battery investment were evaluated.

In March 2022, a non-binding Letter of Intent (MoU) was signed, containing the preliminary intentions of the parties, with the aim of evaluating the cooperation opportunities for Koç Group’s participation in the battery production investment planned to be realized in Ankara with the partnership of Ford and SKO, within the scope of the ongoing studies of the holding to examine the emerging opportunities in the automotive branch. had made public.

News in the South Korean media

South Korean electric vehicle battery manufacturer SK On also announced that it has not decided to establish a subsidiary with Koç Holding and Ford in Turkey now.

South Korea’s Dong-A Ilbo newspaper, based on an anonymous source, stated that SK On company gave up on the contract due to weak macroeconomic conditions.

In a written statement made by SK On, it was said, “We have been evaluating the idea of ​​partnership in Turkey since the non-binding agreement in March 2022, but now the evaluation has not been completed. The final decision on whether to terminate the negotiations has not been taken yet.”

Koç Holding, Ford and SK On were considering the establishment of a factory that would start production in 2025 and produce 30-45 gigawatts (GWh) batteries per year.