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On 26 July, President Tayyip Erdogan revealed that his government will introduce USD30 billion worth of incentives aimed at advancing high-tech sectors. This includes a USD5 billion package to support EV production and a USD4.5 billion package for battery production. Additional grants will be allocated to the solar cell, chip, and wind industries. These support measures are expected to attract at least USD20 billion in private investments. Further incentives are expected to be announced in the near future.
EV Production
Turkey has emerged as a hub for vehicle production, benefiting from its proximity to Europe, free trade agreements with the EU, and cost-effective labour. But more recently the country has been looking to expand its EV production capabilities. With this USD5 billion package, Erdogan hopes to reach a production capacity of one million EVs annually.
Currently, only Togg, Ford, and Toyota are manufacturing EVs in Turkey, and their production volumes remain relatively modest. BYD is set to further enhance Turkey’s EV sector by establishing a USD1 billion production facility with a capacity of 150,000 units per year, expected to commence operations by the end of 2026.
Battery production
With the USD4.5 billion of support, Erdogan hopes to reach 80GWh of battery production by 2030. Currently the country only has two battery production facilities, one run by Farasis Energy and Togg for EVs and another operated by Kontrolmatik for BESS cells.
Other technology areas
An additional USD5 billion has been allocated for the construction of a semiconductor chip factory. Furthermore, USD2.5 billion will be invested in supporting solar cell facilities, while USD1.7 billion will be directed towards the manufacturing of critical components for wind energy.
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