Malaysia is set to launch small-scale electric vehicle battery production this month based on domestically-developed battery technology, according to a report by Nikkei Asia.

The batteries will be produced by Gigafactory Malaysia Sdn Bhd, a wholly-owned subsidiary of NanoMalaysia Bhd, a company controlled by the Malaysian Ministry of Science, Technology and Innovation. The 1,500-square-metre facility is located in the Suria Industrial Park in Sepang, Selangor state.

Malaysian government-controlled NanoMalaysia also has a battery charging technology subsidiary, called Electrick Sdn Bhd, focused on the development and commercialisation of wireless charging technology. Gigafactory Malaysia will focus on supplying batteries for energy storage systems (ESS), in addition to EV batteries.

NanoMalaysia is understood to have developed its in-house ‘graphite-enhanced’ lithium-ion battery technology at a cost of MYR 20 million (US$ 5 million), as part of the government’s efforts to strengthen the country’s EV supply chain. Batteries can account for up to 40% of the cost of battery electric vehicles (BEVs), although prices are gradually coming down as BEV production volumes continue to rise globally.

In an interview with Nikkei Asia, NanoMalaysia’s CEO Rezal Khairi Ahmad said: "We are on the verge of bringing online Malaysia's first local battery technology production facility. This project is likely the first of its kind in the ASEAN region. No other country in the region is producing batteries based on home-grown technologies.”