At least two leading Chinese electric vehicle battery cell producers will establish their operations in Thailand, committing to an initial investment totaling 30 billion baht, the Board of Investment (BoI) announced.
Narit Therdsteerasukdi, the BoI secretary-general, noted that this expectation stems from a recent promotional roadshow for Chinese electric vehicle (EV) battery manufacturers held in the Fujian and Guangdong provinces of southern China from April 7 to 10.
He mentioned that several manufacturers expressed interest in investing in Thailand, including notable companies like 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.
According to Mr. Narit, these firms are attracted to investment opportunities in Thailand and are keen on the BoI’s new incentives for manufacturing battery cells for EVs and energy storage systems.
He explained that producing battery cells involves advanced technology and a deep understanding of chemicals and materials, representing a significant investment. This sector is crucial to the electric vehicle industry.
The BoI offers incentives such as corporate income tax waivers and exemptions on tariffs for imported machinery and raw materials, along with financial support to enhance competitiveness.
Mr. Narit highlighted that this year, at least two major manufacturers have concrete plans to start producing battery cells in Thailand, investing around 30 billion baht and aiming for an initial capacity of 6-10 gigawatt hours per year.
He also pointed out that some companies are either negotiating with Thai partners or further exploring possibilities after initially planning only to produce battery modules and packs. They are attracted by the promotional privileges.
Mr. Narit said, “I believe that in two years’ time, Thailand will have a large-scale battery cell factory. This will be another milestone to strengthen the supply chain and the foundations of the electric vehicle industry.”
China is a global leader in the battery industry, with Chinese battery cell manufacturers holding over 60% market share, led by CATL.
