Thailand has approved a $1bn investment by Sunwoda Automotive Energy Technology (Thailand) to establish manufacturing facilities for electric vehicle (EV) and energy storage system (ESS) batteries at the cell level.
The decision was made by the Thailand’s Commission on the National Competitiveness Enhancement for Targeted Industries and is expected to strengthen the country’s EV supply chain while supporting both domestic and export markets.
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Sunwoda Automotive Energy Technology (Thailand), a unit of China’s Sunwoda Electronic, will build its manufacturing facilities in the Eastern Economic Corridor, with the first plant located in Chonburi Province.
The new facility, which will produce lithium-ion battery cells for EV manufacturers, will be Sunwoda’s first EV-related battery cell factory in the ASEAN region.
With construction underway, the facility is expected to create over 1,000 jobs once it begins production.
In addition to manufacturing unit, the project also includes research and product development units.
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By GlobalDataThailand Board of Investment (BOI) Secretary General Narit Therdsteerasukdi said: “Today marks a milestone in the development of Thailand’s EV supply chain, as having EV battery cells produced locally will significantly reinforce our status as a manufacturing hub for EVs and hybrids, and increase the country’s competitiveness.
“This project will also help widen the use of ESS and solar energy in our country, and, through the hiring of thousands of Thai engineers and workers, contribute to knowledge transfer in an industry which is of critical importance for the future.”
Several Chinese battery electric vehicle (BEV) manufacturers have already begun production in Thailand, including Great Wall Motor, Hozon New Energy Automobile (Neta), BYD, SAIC Motor (MG), and GAC Aion.
Chery Automobile is building a local manufacturing facility, while Chongqing Changan Automobile plans to open its factory in the coming weeks.
Recently, Reuters reported that Thai government plans to introduce tax incentives for plug-in hybrid vehicle manufacturing.
Thailand Deputy Finance Minister Paopoom Rojanasakul was cited by the news agency as saying that the new tax structure would be based on a vehicle’s travel range per battery charge, with lower taxes for longer ranges.
The proposal is expected to be submitted to the cabinet by April 2025 and, if approved, will take effect from 2026.
Last month, Nissan Motor reiterated its commitment to producing vehicles in Thailand. Nissan’s facilities in Thailand, including two vehicle assembly plants, are located at a single site in Samut Prakan province.
