As a result of the discussions regarding  the battery cell production investment as disclosed on 07.02.2023, a non-binding Memorandum of Understanding ("MoU") was signed between Ford Motor Company ("Ford"), LG Energy Solution Ltd. ("LGES") and Koç Holding A.Ş., in order to outline the preliminary intentions of the parties to explore collaboration possibilities for Koç Group to become a party to the foreseen electric commercial vehicle battery cell production investment by Ford and LGES in Ankara.

According to the MoU, if an agreement is reached between the parties, it is planned to start production in 2026, with a total annual capacity of 25 GW-hours in the initial phase. It is also agreed that efforts shall be conducted to increase the capacity by 20 GW-hours in 2029 to reach 45 GW hours in the aggregate.

In this respect, the parties are evaluating the possibility of our joint venture Ford Otosan to be supplied with the battery cells manufactured within the scope of the Project, in order to utilize them in the production of next-generation Transit vehicles.

The MoU will stay valid for 12 months and it includes an exclusivity right granted to LGES and Koç Holding by Ford related to the establishment of a joint venture in Turkey, regarding production of battery cells.

The decision on whether or not to take part in the Project as the Koç Group, the terms of collaboration and partnership, the shareholding structure and the investment conditions will be decided upon the completion of negotiations between the parties and the finalization of the feasibility studies. Accordingly, material developments will be shared with our investors in due course.

This statement has been translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.