Excise Department considers subsidy for EV batteries to help lower prices of BEVs
The Excise Department will hold talks with manufacturers of batteries for electric vehicles to discuss measures that could further help lower the prices of BEVs, the department chief said.
Ekniti Nitithanprapas, director-general of the Excise Department, said officials were studying subsidies for manufacture of batteries so that the prices of BEVs would go down and become competitive with vehicles using internal combustion engine.
Ekniti said batteries constitute about half the price of a BEV car, hence his department is considering subsidy measures so that the prices of BEVS would be further lowered.
The government had earlier approved subsidies for purchasing BEVs and electric motorcycles and the subsidy rates range from 70,000 baht to 150,000 baht per unit for BEVs depending on battery capacity and 18,000 baht for battery electric motorcycles per unit.
He said BEV battery-making is a key supply chain for BEV manufacturing and EV battery-making is a new S curve industry.
As a result, providing subsidies for the BEV batteries would support the government’s policy to promote S curve industries and promote the environment, social and governance concept, Ekniti added.
“But we’ll have to hold talks with the manufacturers first to consider what would be the best way to provide subsidy,” Ekniti said.
So far, the Excise Department is studying three options:
● Providing subsidies at the level of making BEV battery cells
● Providing subsidies in the process of packing cells into battery modules, or
● Providing subsidies in the process of packing modules in complete battery packs for installation in EVs.
Apart from studying the subsidy measures, the department will also study measures for disposal of used BEV batteries.
He explained that the government aims to have some 600,000 to 700,000 BEV units made in the country by 2030 or about 30 per cent of total vehicle production.
As a result, there will be some 600,000 to 700,000 BEV batteries to be disposed of after they expire.
“We must find ways to recycle these used BEV batteries,” Eknitit added.
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