Investment/battery cell manufacturing

Chatrudee Theparat

Two battery cell manufacturers from China plans to invest 30 billion baht in the first phase of their production base in Thailand.

Narit Therdsteerasukdi, secretary general of Board of Investment (BoI), said the BoI’s roadshow to China’s Fujian and Guangdong between April 7 and 10 will lead the agency to meet executives one of the seven global leaders of battery cell manufacturing.

Two companies have showed their intention to establish their production bases in Thailand with an investment of 30 billion baht in the first phase. Each company has planned to manufacture in the first phase with a capacity of 6-10 GWh. The other five are in the process of considering this investment opportunity.

Those seven companies include CATL, CALB, IBT, Eve Energy, Gotion High-tech, Sunwoda and SVOLT Energy Technology.

“Those companies showed their interest in the latest Thai government policy to promote battery cells production, and have seen more opportunities for the investment in the EV industry in Thailand,” Mr Narit said.

Narit Therdsteerasukdi

On February 21, The National Board Electric Vehicle Policy Committee, chaired by Prime Minister Srettha Thavisin, approved a cash grant for EV battery cells manufacturers and other privileges.

The government approved a plan to promote the battery cells production for EV and energy storage systems (ESS) in Thailand by providing financial support via the country’s Competitiveness Enhancement Fund, covering on investment, research & development, human resource development and possibly other benefits available under the Competitiveness Enhancement Act, to those companies which meet criteria.

To qualify for its investment promotion under this scheme, a company must meet the following requirements of being a leading and well-recognized battery manufacturer providing batteries to EV manufacturers; having a clear plan to produce for battery cells for batteries used in EV, and also if possible to produce battery cells for batteries used in ESS; the batteries must have a high energy density of not less than 150 Wh/kg; the battery must have a life cycle of not less than 1,000 cycles, counting from 70% of the nominal capacity at a depth of discharge of not less than 80% at a test temperature of 20-25 degrees Celsius.

Interested companies must submit their investment project proposals by the end of 2027.

“Battery cells manufacturing is a high technology, which requires a large scale of investment. It is a significant upstream of the electrical vehicle (EV) industry while the seven companies reflected that Thailand has gained advantage especially a clear policy of Thai government to support. They said the policy will enhance demand for battery cells which will support big steps of EV ranging from EV, PHEV and HEV.”

China is home to the global leader of battery cells manufacturers with a combined capacity of 60% globally. CALT is the major manufacturer with a 37% share of the global market.

“Those companies are not only part of supply chain to Chinese EV cars, but also to Tesla, Ford, BMW, Mercedes-Benz, Volkswagen,” he said.

They also are alliances to Toyota while Volkswagen to hold major shares in Gotion. Two companies have collaborated to conduct R&D on future battery technology of battery.

EVE Energy also supplies batteries to BMW, SVOLT and Stellantis. Sunwoda supplies to Renault, Nissan, Volkswagen, and Volvo.

“Those seven battery cell manufacturers are in the process of expanding their production bases to locate out of China in a bid to supply to the global market, and reduce risks from geopolitics which are likely to have more drastic effects. Some companies have already invested in the EU and the US and are looking forward to opportunities in Asean. Thailand needs to persuade them to invest in the country.”