23 May 2024

At least two major electric vehicle battery producers in China are showing keen interest in the production of power cells in Thailand, with a potential combined investment in the first phase estimated at over 30 billion baht, according to Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI).

Narit led a delegation on a visit to seven manufacturers of batteries for electric vehicles (EVs), namely CATL, CALB, IBT, Eve Energy, Gotion High-tech, Sunwoda and SVOLT Energy Technology in Fujian and Canton provinces from April 7th to 10th.

In separate talks with the executives of the producers, Narit said that all see business potential in Thailand and have expressed interest in the BoI’s promotional privileges for investment in EV power cells and energy storage systems, which require high levels of technical knowhow and investment.

The promotional privileges range from corporate tax and import tariff exemptions on machinery and raw materials, to financial support from the Fund to Increase Thailand’s Competitiveness and subsidies for human resource development, said the BoI chief.

Due to the rapid expansion of the circular energy sector in Thailand, Narit said that there is an increased need for energy storage and Thailand has the basic infrastructure for the development of energy storage systems.

He noted that Thailand has succeeded in attracting foreign investment in the production of electric vehicles in the country adding, however, that the EV industry will not be fully integrated without power cells, a crucial component for the EV industry.

He believes that, in the next two years, Thailand will have major factories producing battery cells, which will be another major step in completing the EV supply chain in the country.

Currently, China is the world’s leading producer of power cells, with over 60% of global market share, including a 37% share by CATL alone.