China’s Ganfeng Lithium builds $500M battery plant in Türkiye

Chinese battery giant Ganfeng Lithium is set to make a $500 million investment in Türkiye through a strategic partnership with Yigit Aku, one of Türkiye’s largest battery manufacturers.

The new plant is expected to position Ankara as a significant player in the global energy storage sector.

What does $500M worth of lithium investment include?

• Ganfeng Lithium Group, valued at $26 billion and listed on the Hong Kong Stock Exchange, signed a Strategic Cooperation Framework Agreement with Yigit Aku, a leading Turkish lead-acid battery manufacturer.
• The joint venture will focus on producing lithium-ion battery cells, modules, energy storage systems and more.
• The facility in Türkiye will have a production capacity of 5 GWh annually, with scalable operations and a total investment of $500 million.
• The factory will include production lines for 100Ah, 280Ah and 314Ah lithium battery cells, primarily targeting energy storage systems (ESS) for both Turkish and international markets.
• The venture will apply for incentives under Türkiye’s HIT-30 Program, which supports high-priority technology projects with specialized solutions and incentives.

Employment, infrastructure

• The production facility will employ approximately 400 people.
• It will cover 132,200 square meters and include an R&D center, technical training center, entrance control and material testing center, battery testing center, warehouses and office buildings.
• The facility’s equipment investment is estimated at $202.14 million.
• The facility will produce batteries for energy storage systems, electric industrial vehicles (e.g., forklifts, AGVs, golf carts), base stations, telecommunications, maritime applications, UPS systems and consumer products.
• Product entry into the market will begin even before the completion of the production facility.

Technology, market focus

• The joint venture will focus on advanced lithium battery technologies including solid-state batteries, high-power batteries, and applications in maritime, aviation and aerospace sectors.
• The global lithium-ion battery market is expected to grow at a compound annual growth rate (CAGR) of 15.70% from 2023 to 2030, reaching $188 billion by the end of the projection period.
• Türkiye’s energy storage market is expected to demand 120 GWh of storage capacity over the next three years.

Who are the companies?

• Ganfeng Lithium, based in Xinyu, China, began producing batteries for the electric vehicle industry in 2017. It has become one of the largest global players, producing 24% of the world’s lithium hydroxide in 2022 and supplying major companies like Tesla, BMW, and LG.
• Yigit Aku, established in Ankara in 1976, is one of Türkiye’s leading battery manufacturers, with an annual production capacity of 7 million batteries. The company exports to over 100 countries and began producing lithium batteries for electric vehicles in 2013.

Where Chinese facility will be?

• The location of the new facility in Türkiye has not been disclosed. However, the project is expected to significantly impact Türkiye’s energy storage capabilities and export potential, particularly in the European market.