Siro, established as a joint venture of Türkiye's Automobile Initiative Group, or Togg, the country's first electric vehicle maker, 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 Özgur Özel, Siro’s commercial general manager, said the new campus is set to be operational by year-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," Özel said.

Qian Hou, the chairperson 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.

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

It is expected to 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.