Turkish carmaker TOGG inked a deal with China’s Farasis Energy Co. Ltd. to jointly manufacture electric batteries, a key part of Turkey’s multi billion-dollar endeavor to produce its own automobile brand.
Farasis will supply lithium-ion batteries for Turkey’s Automobile Joint Venture Group Inc., as the Turkish company is formally known. The two will form a joint venture early next year to also sell batteries and other power storage units, according to a statement by TOGG.
The Turkish firm serves as an umbrella organization for five companies that are building their first car factory in Gemlik, a seaport town near the country’s automobile manufacturing hub of Bursa. Their planned investment of around 22 billion liras ($2.8 billion) will enable the production of five models including SUVs and a total output of 175,000 vehicles a year, a target that will be met gradually in the years following 2022.