Thailand has approved a $1 billion investment by China’s Sunwoda Electronic to establish battery manufacturing capacity in the country for EVs and energy storage systems.

The investment proposed by Sunwoda Automotive Energy Technology (Thailand) Co. was announced on Thursday by the Thailand Board of Investment (BOI). Sunwoda will build manufacturing facilities in the country’s Eastern Economic Corridor area, Kallanish learns.

The first plant will be located in Chonburi Province, producing lithium-ion battery cells for EV manufacturers. BOI has not provided further details, including planned production capacity and development timeline.

According to the Thai government, the cells will strengthen the country’s EV supply chain and create over 1,000 jobs. “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,” adds Narit Therdsteerasukdi, secretary general at BOI.

Sunwoda Electronic is a leading battery manufacturer, ranking first in hybrid electric vehicle (HEV) battery sales and third in high-end EV battery sales in China in 2023. The Thai facility will be its first EV battery cell plant in the ASEAN region.

Thailand, the world’s 10th-largest automobile producer and Southeast Asia’s top manufacturer in 2023, has aggressively promoted EV investments through subsidies, tax breaks, and other incentives. Several Chinese EV makers, including BYD, SAIC Motor (MG), Great Wall Motor, and Hozon (Neta), have already set up production in Thailand, with Chongqing Changan Automobile and Chery Automobile also planning local operations.

BOI says that foreign direct investment in Thailand surged 35% in 2024 to THB 1.14 trillion ($33.76 billion), the highest level in a decade, driven by large-scale projects in data centres, semiconductors, and advanced electronics. The automotive sector ranked third in total investment applications, with 309 projects valued at THB 102.4 billion.

Kallanish has contacted Sunwoda for comment.