Cailianshe News July 29th (Editor Li Lin / Intern Editor Wang Yifei) Turkish President Erdogan recently announced at the HIT-30 high-tech incentive plan conference in Istanbul that Turkey will launch an incentive plan for $30 billion, focusing on attracting investment in advanced technology fields such as electric cars, battery production, semiconductor manufacturing, and energy technology.

Erdogan said the government's goal is to attract at least $20 billion in private sector investment to Turkey, which he believes will greatly promote the country's development process.

The plan was announced weeks after BYD agreed to build a production plant in Turkey with an annual output of 150,000 vehicles, with a total investment of $1 billion.

Erdogan said Turkey has paved the way for global automakers and other large-scale vehicle manufacturers to invest in the country's electric vehicle industry and is continuing to negotiate with other companies.

Turkey has provided approximately 30 billion lira (approximately 9.1 billion US dollars) in low-cost financing to companies in the past three years. Erdogan said Turkey will continue to take necessary steps to improve the investment environment.

He pledged to continue to support key technologies that promote Turkey's economic and technological independence.

In the automotive industry, the new plan will launch a $5 billion incentive plan to increase the country's production capacity to at least 1 million vehicles per year.

In the battery industry, the new plan will provide $4.5 billion in incentives, with up to $6,000 in subsidies per megawatt-hour of investment, with a goal of establishing 80 gigawatt-hours of production capacity by 2030 and establishing Turkey as a regional production center. In addition, Turkey will provide $2.5 billion in grant support for battery facilities and allocate $1.7 billion for critical components of wind power equipment manufacturing.

In the semiconductor industry, the new plan will provide $5 billion in incentives to establish chip factories.

In the field of solar energy, the new plan will provide up to $8,000 per megawatt-hour for solar cell investments, with a goal of establishing 15 gigawatts of capacity.

Erdogan said that Turkey will bear half of the personnel costs of new research and development (R&D) centers established by the world's top 1,000 companies in the country for five years.

Turkey has established 10 demonstration plants to guide the industry's productivity transformation. Erdogan said Turkey will establish four new demonstration plants.

Turkey's economy has improved.

Turkey's economy is facing challenges based on persistent inflation. Last year, Erdogan formed an economic team to stabilize the economy and control prices. After achieving positive results recently, the country's confidence is expected to increase significantly.

Last week, Moody's Investor Services raised Turkey's sovereign credit rating. This is the first time in more than a decade, due to improvements in governance and economic policies.

Last month, due to Turkey's significant progress in combating illegal activities, the country was also removed from the 'gray list' of the Financial Action Task Force (FATF), which is dedicated to international anti-money laundering and counter-terrorism financing. Countries on the gray list are usually subject to stricter monitoring to prevent money laundering and terrorist financing.

According to the latest report released by the Central Bank of Turkey in May, the inflation rate in April reached 69.8%, higher than the initial forecast. But regulators are more optimistic about the long-term outlook, and expect inflation to drop to 38% by the end of 2024 and further to 14% by the end of 2025.