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Turkish automaker, Chinese battery firm sign $56.2M loan deal with ICBC Turkey

Siro, ​​​​​​​a joint venture of Türkiye’s Automobile Initiative Group Togg and major global battery producer Farasis Energy, on Thursday signed a 400 million yuan ($56.2 million) credit deal with the Industrial and Commercial Bank of China (ICBC) Turkey to accelerate its investments.

Siro Silk Road Clean Energy Solutions will use the financing for the construction, machinery, and equipment investments on its new campus, where R&D, engineering, and production activities, including battery cells, will take place, according to a statement on Thursday.

Naci Ozgur Ozel, Siro’s commercial general manager, said the new campus will be operational by year’s-end.

“We aim to become one of the pioneering energy storage players in the region surrounding Türkiye, including Europe, by 2026 with the start of cell manufacturing,” Ozel said.

Qian Hou, the chairman of ICBC Turkey, said the deal is in line with the bank’s global sustainability vision and its mission to strengthen economic relations between Türkiye and China.

“This valuable collaboration represents an innovative example of the financing model we provide for long-term, high-value-added, and employment-increasing projects for the country’s economic development,” she added.

The loan has a two-year grace period and a total term of five years.

Siro was established in 2021 to develop and provide clean energy storage solutions for e-mobility and other applications in Türkiye and neighboring countries.

Siro started the serial production of battery modules and packs by the beginning of 2023 as well as the development of battery cells.

It will begin the serial production of battery cells in 2026 and aims to become an important energy storage player in the region with its 20 GWh production capacity.​​​​​​​