Ford will partner with LG Electricity Resolution to make a new battery plant in Turkey, dropping a offer with SK On, as the automaker seeks to velocity up the shift to clear cars and diversify its battery suppliers, men and women familiar with the subject stated.

Ford and LG Electrical power Resolution strategy to signal a memorandum of knowing in the coming weeks, possibly in late January or early February, according to two folks with information of the make any difference who asked not to be named for the reason that the improve in associates is not general public.

Ford will continue on to perform with SK Innovation’s battery unit, SK On, on other jobs, together with building two factories in the U.S. and increasing capacity at a plant in Hungary, element of a drive to make 2 million electrical automobiles every year by the finish of 2026.

The facility in Turkey is slated to start procedure as quickly as 2025 with an yearly potential of 30 to 45 gigawatt several hours, according to an original accord from March final 12 months in between Ford, SK On and Turkish conglomerate Koc Keeping.

Former media experiences mentioned Ford had scrapped its plan for the plant in Turkey, not that the corporation was modifying associates.

A spokesman for Ford stated the battery task is on monitor. LG Vitality Alternative declined to comment.

Ford CEO Jim Farley has dedicated $50 billion to developing and producing electrical vehicles.

The automaker is accelerating EV and battery production, which includes its initially all-new assembly plant in a 50 percent century together with a new SK battery plant in Tennessee.

SK can make batteries for Ford’s electrical F-150 Lightning pickup manufactured in Michigan, while LG materials the batteries that ability the Mustang Mach-E the automaker suppliers in Mexico.

Ford is also searching to create a U.S. battery plant with China’s Up to date Amperex Know-how Co.

Building area battery plants is central to Ford’s initiatives, but substantial power prices in Europe have come to be a stumbling block.

Swedish battery maker NorthVolt is reconsidering plans to increase a German factory, and Tesla is reportedly delaying battery-producing efforts at its plant outside the house Berlin.

In an previously reaction to Bloomberg Information, SK On explained it hadn’t made a decision regardless of whether to halt negotiations with Ford on location up the joint enterprise in Turkey.

Ford options to construct a new model of its Transit Custom made van for the European market in Turkey in 2023 which includes complete-electric powered and hybrid variants along with the combustion-engined model.

The Turkey battery plant is prepared to be positioned close to the Turkish funds, Ankara, and would be a single of the biggest EV battery services in Europe and Turkey.

Reuters contributed to this report

By Tara