Local company producing batteries to support Thailand’s EV ambitions

The commitment aligns with the government’s policy of strengthening the EV industry while developing the kingdom as a key global hub for EVs.

Speaking to a group of The Nation media members during a factory visit in Chachoengsao, Somphote Ahunai, CEO of Energy Absolute, said that having a factory that can completely produce lithium-ion batteries from cells will reinforce Thailand's position EV hub.

"The capacity to build lithium-ion batteries is key to Thailand becoming a leading EV hub,” he said, adding that although the company is unable to smelt certain minerals as raw materials, it has developed a process for producing cells, which are the smallest and most important components of lithium-ion batteries.

Currently, the factory can produce approximately 1 gigawatt per hour, which supplies batteries mainly to local electric bus makers and is considering expanding its capacity. By the end of 2025, the production rate will be 4 gigawatts per hour. Another potential extension will be determined by the growth in market demand.

“However, we are now the first battery gigafactory in ASEAN," he said with pride.

Energy Absolute developed commercial EV manufacturing to meet battery demand even before Thailand's EV industry flourished and now manufactures commercial electric vehicles such as buses, trucks, ferries, and locomotives. The EV tugboat will come next, Somphote said.

He added that the battery and commercial EV factories are 95% geared towards meeting domestic demand but that it would be necessary to stabilise the company's growth in Thailand before serving the international market.

Chatrapon Sripratum, Energy Absolute's vice president of climate change strategy and sustainability, believes that Thailand's growing concerns about the green economy will benefit the company's growth.

One of the reasons, he explained, is that batteries will play an important role in ensuring the transition to clean energy.

In addition to serving as the power source for EVs, he pointed out that batteries are important for energy storage, contributing significantly to the storage of electricity generated from renewable sources such as wind, solar, and hydropower.

However, as battery demand continues to rise, it is necessary to prepare for capacity expansion as well as to continue conducting research and development to improve technological know-how in battery and EV manufacturing.

"The process requires a massive amount of capital. As a result, we need some incentive and regulatory support from government agencies such as the Board of Investment (BOI)," Chatrapon said.

He emphasised that while the current BOI measures are excellent, it would be prudent to consider adding some additional benefits to assist Thai businesses.

At present, Energy Absolute is discussing potential supportive measures to help the company grow with BOI, and Chatrapon anticipates some positive results.

The BOI is currently holding a roadshow in China to entice leading battery cell manufacturers to invest in Thailand as part of the country's plan to become an electric vehicle (EV) manufacturing hub.

According to Narit Therdsteerasukdi, the BOI’s secretary-general, the roadshow kicked off in Guangdong and Fujian provinces on Sunday (April 7) and will continue for four days. The goal is to explain the incentives available to EV battery cell manufacturers who use Thailand as their production base.

Among the benefits provided by the BOI are maximum 15-year exemptions from corporate tax, dividend tax, import duty on machines, and import duty on materials imported for future export.

The battery manufacturers will also be eligible for a 90% reduction in import duty for materials to be used in products sold in Thailand, as well as an import duty exemption for materials used in research.

Narit added that battery makers who are eligible for investment privileges will receive subsidies for investment, research, and personnel training.