Turkey announced a plan on Friday for billions of dollars in new subsidies to encourage the development and production of electric vehicle batteries, aiming to become the regional leader in the industry, Agence France-Presse reported.
President Recep Tayyip Erdoğan unveiled a $4.5 billion incentive program for battery producers while attending a high-tech fair in Istanbul.
The country will also offer $5 billion for carmakers to build EVs in Turkey, with a goal of producing at least 1 million vehicles a year, he said.
“We have made battery production a priority area for our automobile industry in order to stay competitive,” Erdoğan said.
The new public money comes on top of a $5 billion subsidy program for computer chips, bringing Turkey’s total spending on EV development to $15 billion.
“Our goal is to attract investments in next-generation vehicles as well as R&D and engineering activities to our country,” Erdoğan said.
He also announced subsidies totaling $4.2 billion to develop solar and wind energy technologies.
Turkey plans to draw on its geographical position and an EU customs deal to entice Chinese investors looking to access European markets tariff-free, as it did in early July with EV giant BYD.
Five other Chinese car makers are considering investing in the country, at the crossroads between Europe, the Middle East and Central Asia, according to the state-owned Anadolu news agency.
Turkish manufacturer TOGG and Chinese firm Farasis have also partnered to produce EV batteries in Turkey.