Thailand is making an effort to build its EV supply chain. According to a government official, the country is in talks with China-based CATL and other battery companies about setting up local factories to accelerate its pace of automotive electrification.
Reuters reported that Narit Therdsteerasukdi, secretary general of Thailand Board of Investment (BOI), said Thailand wants to attract battery cell producers to build production plants in the country and is talking to many companies in the industry, including CATL.
But Narit did not reveal any details about the discussion, according to Reuters.
Known for its automotive production competence in Southeast Asia, Thailand offers tax credits and subsidies for EV manufacturing in order to remain a hub in the region. The government aims to electrify 30% of the annual production of 2.5 million internal combustion engine vehicles by 2030.
Thailand has lured several carmakers to grow their EV ambition there. China-based Changan Automobile announced in April that it will build its first overseas EV plant in Thailand with a THB9.8 billion (US$285 million) of investment. BYD also began constructing a plant in the country in March.
Taiwan-based Foxconn established a joint venture, Horizon Plus, with EV company Arun Plus. Horizon Plus, which focuses on EV and component manufacturing services, broke ground on a plant in Thailand in November 2022. According to Foxconn, the production site will be completed in 2024 and ready to begin operation. The initial production capacity is 50,000 EVs annually.
Arun Plus is a subsidiary of Thailand's state-owned energy group PTT Public Company (PTT). It signed a strategic MoU with CATL in May 2022 to explore potential cooperation and development opportunities in the battery business, including energy storage systems, in ASEAN countries.
Based on the MoU, CATL authorizes its cell-to-pack (CTP) technology to Arun Plus. Both parties intend to provide batteries to Horizon Plus and other brands in the region.
According to Reuters, Narit said Thailand hopes to attract investment in EV supplies and assembly, including batteries and chargers. The government will prioritize support for battery plants with a capacity of over 8GWh, he added.
