Turkey’s Koc Holding has withdrawn from a non-binding agreement with Ford (NYSE: F) and LG Energy Solution for a collaborative effort to establish a major electric vehicle (EV) battery cell facility near Ankara. 

“Considering the current pace of electric vehicle adoption, the timing is not appropriate for a battery cell investment,” Koc Holding said in a statement.

Despite this setback, Ford and Koc Holding expressed their ongoing commitment to advancing electric vehicle production at Ford Otosan’s Kocaeli Plant. Both companies will assess potential battery cell investments in the future, aligning with the evolving dynamics of the electric vehicle market.

LG Energy Solution, a key supplier of EV batteries to major automakers including Ford, General Motors, and Tesla, acknowledged the mutual decision to abandon the joint venture due to the prevailing pace of consumer electrification adoption. 

However, reports say LG Energy Solution and Ford are collaborating on an alternative plan to facilitate battery cell production for electric vehicles through LG Energy Solution’s existing operations, sustaining their longstanding business relationship.

Information for this story was found via Reuter,s Electrek, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.