First funding of B30bn expected
PUBLISHED: 18 Apr 2024 at 04 :00
With a combined initial investment of 30 billion baht, the Board of Investment ( BoI ) stated that it believes that at least two leading Chinese manufacturers of battery cells for electric vehicles will choose Thailand to produce their goods.
The expectation follows the government’s roadshow that highlighted the promotional benefits for Chinese electric vehicle ( EV ) battery makers, which took place in Fujian and Guangdong from April 7 to 10 according to BoI secretary-general Narit Therdsteerasukdi.
He claimed that numerous producers expressed an interest in investing in Thailand. The list includes 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.
These businesses are interested in the BoI’s fresh special privileges for producing battery cells for EVs and energy storage systems because they see investment options in Thailand, according to Mr. Narit.
The inland industry that produces power cells requires significant investments and uses cutting-edge technology and chemical and material knowledge. It is the center of the electric vehicle industry, he said.
Investors can benefit from the BoI’s ability to relinquish their corporate income tax while receiving financial aid and exemptions from tariffs on imported equipment and raw materials, all of which will increase their competitiveness.
At least two large producers have clear plans to produce power tissues in Thailand this year, according to Mr. Narit, and they will spend about 30 billion ringgit. According to him, each company will start producing products at 6 to 10 gigawatt days annually.
Some other businesses are pursuing deals with Thai partners or are conducting research into the issue after initially intending to just produce battery modules and packs. They are interested in the commercial protections, Mr Narit noted.
” I believe that in two years ‘ time, Thailand will have a large-scale battery cell factory. The BoI secretary-general said that this will be another breakthrough in advancing the provide network and the foundations of the electric vehicle industry.
China leads the country’s power business. More than 60 % of Chinese mobile device companies are global, with CATL leading the charge.