Zorlu Holding signed a partnership deal with GSR Capital

Zorlu Holding, renowned for their innovative technology investments signed a strategically important preliminary agreement that will raise the profile of Turkey in global battery technology – a technology used in the production of electronic vehicle batteries known as the “oil of the future”. Underlining that the two different partnerships with GSR Capital under the preliminary agreement they will be making a USD 4.5 billion investment by the year 2018, Ömer Yüngül, the CEO of the Zorlu Holding, said “This will win Turkey in the long run an export revenue of USD 6 billion from the export of high value added products, and generate 4,000 new jobs. The 25,000 MW-capacity battery factory to start operations in 2023, on the other hand, will produce batteries to power 500,000 electric vehicles.” Speaking at the signing ceremony of the preliminary agreement GSR Capital Co-chair Jianghua Su said “The battery production business we will set up in partnership with the Zorlu Group will be a step in our joint efforts to become one of the leading players of the innovation economy of the future.”    

Zorlu Holding signed a preliminary partnership agreement on two areas that includes 4.5 billion dollars’ investment with the GSR Capital, which invests in many companies that produce innovative businesses, primarily in innovative energy systems and high performance battery technologies. Under the deal, GSR Capital will in last in battery business with %50 partnership of Zorlu Group Company Vestel in setting up a mega battery factory with a planned potential capacity of 25,000 MW to produce batteries for use in electric vehicles and energy storage systems. The deal also provides for a 50/50 partnership between Meta Nikel, another Zorlu Group company which is an R&D and technology base of the next generation mining industry in Turkey. Both these new businesses will carry Zorlu Holding to the league of global companies that set the trends in the smart world of the future thanks to the R&D potential and know-how it will create.

The press conference organized for the announcement of the preliminary partnership deal was attended by Jianghua Su, the Co-chair of GSR Capital, the top level executives of NEVS, the designer and producer of superior quality electric vehicles, and one of the focus companies the GSR Capital invests in, namely NEVS Board Chairman Kai Johan Jiang, CEO Stefan Tilk and Representative Shareholder Chao Ma, Board Members of Zorlu Holding Olgun Zorlu, Selen Zorlu, Emre Zorlu, Zorlu CEO Ömer Yüngül and the President of Vestel Group of Companies Turan Doğan.   

The investments under the partnership deal will earn the Turkish economy a high added value export revenue of 6 billion dollars in the long run, and anew employment opportunity for 4,000 people. The two groups are set to establish R&D centers in the associated fields of materials, mechanics and software in Japan, China and Turkey. Under the agreement it is planned to start battery pack operations before the end of 2018, and to complete the investment for the full battery production in the next 5-year period. The factory, with an annual capacity of 25,000 MW, to be commissioned in 2023 will perform the whole line of processes from manufacturing of intermediate products to software, and produce batteries

After the signing ceremony, GSR Capital Co-chair Jianghua Su said, “GSR Capital focuses on industrialization of new energy technology for years. We believe in the power, dynamism and potential of Turkey. This partnership with Zorlu Holding, one of the most innovative groups of Turkey, will be a key part of our business development in Europe. This cooperation with Zorlu Holding for nickel, cobalt and battery production enables a vertical integration in a win-win cooperation. We appreciate the vision, entrepreneurial spirit and courage of Zorlu Holding, which developed a magnificent plant like Meta Nikel, one of the top 10 plants in this field not only in Turkey but also in the world. Now, altogether we will make investments and export high value-added products to many countries across the world. Besides electric cars, we will join our forces to offer innovative products in many fields related to energy storage. With this battery production plant that we will create as part of this vision, we will work together to become one of the strongest players in the global innovation economy of the future. I hope this partnership will be the first step for new achievements for GSR Capital, Zorlu Holding and Turkey.”

Zorlu Holding CEO Ömer Yüngül said under the two partnership agreements with GSR Capital, they would invest a total of 4,5 billion dollars by 2023. Concerning the Meta Nikel investment, Yüngül continued as follows: “We are entering into a comprehensive agreement with GSR Capital. Initially, GSR Capital will become 50 percent partner in Meta Nikel in Gördes, Manisa, the first nickel-cobalt processing facility not in Turkey only but in Europe as well, founded by our Group with its entrepreneurial spirit and industrial leadership. With this partnership we plan to fourfold our production capacity from today’s annual 10,000 tons to 40, 000. We are currently producing concentrated nickel in Meta Nikel. With the new sulfate investment to be made under the partnership deal, we will start producing nickel sulfate and cobalt sulfate used in batteries. Additionally, we will make another investment to establish a new facility in Gördes for producing sulfuric acid, which we currently import to use in nickel production processes. We will also establish a nickel sulfate and cobalt sulfate production facility with a production capacity of 20,000 tons in our production site in Eskişehir. Hence, while increasing the capacity of our Meta Nikel facility four times, we will be increasing the added-value of the nickel we produce as well.”

Concerning the battery production business Yüngül said this investment would make the first stage of a long journey and continued as follows: “Here, we will start with battery pack business for electric cars and power storage. Besides, we are exploring the possibility of setting up a 25,000 MW capacity battery production facility on an area of about 300,000 square meters. We aim to start our battery production investment in 2018 and have our factory start operations in 2023. These investments in batteries which had started to be used in mobile phones, and which today are already being used in electric vehicles and in the storage of the energy, will contribute to the economic growth in Turkey. Our partnership will enable us to turn an intermediary product which we export from Meta Nikel for 1 billion dollars, into a value-added finished product that will bring an export revenue of 6 billion dollars. This cooperation indeed means a leap forward to a phase where we will produce the brain of an electric vehicle, i.e. the battery, and thus become a game-maker in this field.”

A world-class product for the world market

Zorlu Holding CEO Ömer Yüngül said their work in Meta Nikel included a high level of technology, and they would focus on higher added-value nickel products thanks to their partnership with GSR Capital, a leading global investment company which started investment in Electric Vehicle Sector in 2007 and has a unique competitive position in the global Electric Vehicle industry. Yüngül spoke as follows: “Our Meta Nikel facility already stands as an R&D and technology base for the next-generation mining in Turkey. We made a leap forward in process management. Now it is time to produce higher value added nickel forms. We are experienced in leveraging technology and human resources to make this production. Moreover we seek economies of scale. In order to offer your goods to the global market, you have to produce world-class products. This is the fundamental reason for our investment here. Now we will quadruple our production and export higher value-added products. The 25,000 MW-capacity factory that will start operations in 2023 will power 500,000 electric vehicles. We believe our joining forces with a global group like GSR Capital will create a great synergy that will offer us even bigger opportunities in this field.”