Thailand likely to house major EV battery factory within two years

Picture courtesy of frimufilms, Freepik

The Board of Investment (BoI) anticipates the establishment of a substantial facility for the manufacturing of battery cells for electric vehicles (EVs) in Thailand within a two-year timeframe. This projection follows a promotional roadshow conducted by the BoI in China just last week.

Narit Therdsteerasukdi, the BoI Secretary-General, explained that this roadshow emphasised the benefits and incentives being offered to Chinese EV battery producers. The event took place in the Chinese provinces of Fujian and Guangdong from April 7 to April 10.

Among the manufacturers showing interest were Contemporary Amperex Technology Co Ltd (CATL), China Aviation Lithium Battery (CALB), Inpow Battery Technology (IBT), Eve Energy, Gotion High-tech, Sunwoda, and SVOLT Energy Technology.

These companies recognised the potential for investment in Thailand and expressed keen interest in the BoI’s newly introduced incentives for the production of EV battery cells and energy storage systems, as noted by the BoI secretary-general.

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Narit further pointed out that the manufacturing of battery cells constituted an upstream industry. This sector requires a comprehensive understanding of chemical and material science, along with significant investment. It forms the backbone of the electric vehicle industry.

To bolster competitiveness, the BoI provides a range of incentives to prospective investors. These include a waiver on corporate income tax, exemption from tariffs on imported machinery and raw materials, and financial support.

The BoI secretary-general anticipates that, within the current year, at least two large-scale manufacturers will finalise their plans to produce battery cells in Thailand. He estimates a combined investment of approximately 30 billion baht (US$ 800 million) for this venture. Each manufacturer is expected to kick off with an annual production capacity ranging between 6 and 10 gigawatt-hours, reported Bangkok Post.

Other companies are either in talks with potential Thai partners or expanding their initial plans focused solely on producing battery modules and packs. These firms have shown interest in the new incentives rolled out by the BoI, said the BoI secretary-general.

“I am confident that, in two years, Thailand will house a large-scale battery cell factory. This will mark another significant milestone, further strengthening the supply chain and establishing a solid foundation for the long-term growth of the electric vehicle industry in Thailand.”

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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