Overview

ICBC Turkey provides RMB 195 million loan for Lithium-Ion Battery Manufacturing and R&D Plant Construction Project

Commitments (Constant USD, 2023)$27,540,646

Commitment Year•2023Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeyOverseas Jurisdiction•TurkeySector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 23, 2023

First repayment (originally scheduled): Nov 22, 2025

Last repayment (originally scheduled): Nov 21, 2028

Geospatial footprint

Map overview

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The purpose of the project is to construct a lithium-ion battery manufacturing and R&D plant in Gemlik. The Siro Battery Development and Production Campus is located on an area of 607 thousand square meters next to Togg’s production base in Gemlik. More detailed locational information can be found at https://www.openstreetmap.org/way/1194697571

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

ICBC Turkey Bank A.Ş.

Receiving agencies

Joint Venture/Special Purpose Vehicles

Siro Silk Road Temiz Enerji Depolama Teknolojileri Sanayi ve Ticaret A.S.

Loan desecription

ICBC Turkey provides RMB 195 million loan for Lithium-Ion Battery Manufacturing and R&D Plant Construction Project

Grace period•2 yearsInterest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On September 27, 2021, Siro Silk Road Temiz Enerji Depolama Teknolojileri Sanayi ve Ticaret A.S. (“Siro Silk Road”) was established as a special purpose vehicle and joint venture of Türkiye’s Türkiye Otomobil Girişim Grubu (TOGG) and China’s Farasis Energy (Ganzhou) Co. Ltd. in order to develop energy storage solutions for automotive and non-automotive applications for Turkiye and surrounding countries. Then, on November 23, 2023, ICBC Turkey successfully disbursed a RMB 195 million term loan to Siro Silk Road for the Lithium-Ion Battery Manufacturing and R&D Plant Construction Project. The loan carries a 5-year maturity, a 2-year maturity, and a SHIBOR-based interest rate with an unspecified margin. The purpose of the project is to construct a lithium-ion battery manufacturing and R&D plant in Gemlik. The plant is ultimately expected to reach 20 GW capacity by 2031. The project’s groundbreaking ceremony took place on April 26, 2023 and mass production of battery cells was originally scheduled to commence in 2026.