Thailand approves Sunwoda's $1bn battery investment

Market: Battery materials, Metals
13/03/25

Thailand has approved an investment of more than $1bn by major Chinese lithium-ion battery manufacturer Sunwoda to produce battery cells for electric vehicles (EVs) and energy storage systems (ESS).

Sunwoda's Thailand-based subsidiary Suwoda Automotive Energy Technology will build manufacturing facilities in the country's Eastern Economic Corridor, Thailand's Board of Investment (BOI) said on 13 March.

Its first plant will be in the Chonburi province and will produce lithium-ion battery cells for EV manufacturers. The plant's capacity was not disclosed. The plant is Sunwoda's first EV-related battery cell plant in the Asean region, said BOI.

"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," said BOI's secretary-general Narit Therdsteerasukdi.

Chinese automotive firms have entered Thailand to build facilities in recent years, including state-owned auto manufacturers Changan Automobile and Chery Automobile, and EV maker Hozon New Energy. Chinese battery firms have also been looking to do the same, with BOI previously indicating interests from major Chinese battery manufacturing companies.

Changan's plant in Thailand is expected to be launched in the "coming weeks", said BOI, while Chery's plant is still under construction.

Thailand's National Electric Vehicle Policy Board approved an extension in late 2024 for the battery EV production requirements for BEV producers in the country. BEV manufacturers in Thailand are required produce certain numbers of BEVs based on their import volumes in 2022-23.

Thailand's automobile production totalled around 107,100 units in January, down by almost 25pc on the year, on the back of sluggish domestic sales owing to strict lending from financial institutions given high household debts, according to the Federation of Thai Industries.

By Joseph Ho

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