Thailand recently approved a $1 billion 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. This decision was made by the Thailand’s Commission on the National Competitiveness Enhancement for Targeted Industries with the aim of strengthening the country’s EV supply chain and supporting both domestic and export markets.
Sunwoda Automotive Energy Technology (Thailand), a subsidiary of China’s Sunwoda Electronic, will be constructing its manufacturing facilities in the Eastern Economic Corridor, with the first plant set to be located in Chonburi Province. This new facility will produce lithium-ion battery cells for EV manufacturers, marking Sunwoda’s first EV-related battery cell factory in the ASEAN region.
The construction of the facility is already underway, and it is expected to create over 1,000 jobs once it begins production. In addition to the manufacturing unit, the project also includes research and product development units.
Thailand Board of Investment (BOI) Secretary General Narit Therdsteerasukdi expressed the significance of this project in the development of Thailand’s EV supply chain. He emphasized that having EV battery cells produced locally will strengthen the country’s status as a manufacturing hub for EVs and hybrids, increasing its competitiveness. The project is also expected to promote the use of ESS and solar energy in Thailand while contributing to knowledge transfer in the industry.
Several Chinese BEV manufacturers have already started production in Thailand, including Great Wall Motor, Hozon New Energy Automobile (Neta), BYD, SAIC Motor (MG), and GAC Aion. Chery Automobile is also building a local manufacturing facility, with Chongqing Changan Automobile planning to open its factory soon.
Moreover, the Thai government plans to introduce tax incentives for plug-in hybrid vehicle manufacturing based on a vehicle’s travel range per battery charge, with lower taxes for longer ranges. This proposal is expected to be submitted to the cabinet by April 2025 and, if approved, will take effect from 2026.
Nissan Motor has also reiterated its commitment to producing vehicles in Thailand, with facilities located at a single site in Samut Prakan province. The automotive industry in Thailand is witnessing significant developments, with investments and initiatives aimed at strengthening the EV supply chain and promoting the production of electric vehicles and batteries.
