Chinese firms eye EV supply chain in Thailand’s Smart Park

Chinese companies have shown keen interest in the EV supply chain and energy sectors of the Smart Park Industrial Estate, situated in Rayong, Thailand. This industrial estate is due to open by the end of the current year, according to the Industrial Estate Authority of Thailand (IEAT).

The companies aim to establish factories manufacturing EV components to cater to the burgeoning Thai EV market. They also have plans to venture into energy development, revealed Veeris Ammarapala, the governor of IEAT.

“We have taken this group of investors to visit Smart Park. They are interested in leasing large plots of land and are gathering data to conduct feasibility studies on their new businesses.”

Smart Park gives particular importance to the digital sector, with digital technology playing a crucial role in supporting several businesses, including EV assembly. The Thai government offers incentive packages to global EV manufacturers to invest in Thailand, with the broader objective of establishing Thailand as a regional hub for EV production.

As per an EV roadmap for the period between 2022 and 2030, authorities intend for battery EVs to constitute 30% of total car manufacturing by 2030. This includes the production of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

Amidst these developments, the IEAT plans to further encourage investment at Smart Park by offering a one-year waiver on land rental costs and an exemption on fees for operating facilities at the industrial estate for the same duration.

With a focus on targeted industries and supporting a drive towards carbon neutrality, Smart Park is situated in the Map Ta Phut area, covering 1,383 rai of land. The estate also supports the aviation and logistics, medical devices, and robotics sectors, in addition to the digital sector.

Smart Park’s construction is currently 82% complete, said Veeris.

“We expect Smart Park to create 7,459 jobs and generate 1.3 billion baht (US$ 35 million) a year for the economy.”

In a bid to combat global warming, the IEAT recently announced its partnership with six Thai and Japanese companies. The collaboration will involve a joint study on hydrogen fuel at the Map Ta Phut and Smart Park industrial estates.

This project aligns with Thailand’s carbon neutrality target and supports investors interested in using clean-energy-based electricity and transport, reported Bangkok Post.