Thailand's Board of Investment announced on Thursday that it has approved a $1 billion investment from China’s Sunwoda Electronic to build an electric vehicle (EV) battery plant. This move adds to a growing list of EV-related projects in the country, a key automotive hub in Southeast Asia.
The Shenzhen-based company plans to create 1,000 jobs in Thailand through the production of lithium-ion battery cells for EV manufacturers. The facility will also include manufacturing, research, and product development capabilities, boosting the region’s position in the global EV supply chain.
Thailand is the largest automobile production and export center in Southeast Asia, home to major car manufacturers like Toyota and Honda. However, the sector is currently experiencing a significant downturn. Auto production in Thailand fell by 10 percent last year, marking a four-year low, while domestic sales and exports dropped by 26 percent and 8.8 percent.
In recent years, Chinese EV manufacturers, including Great Wall Motor, have invested over 102.7 billion baht ($3 billion) in Thailand, according to the EV industry association. To further support the industry, the Thai government recently announced plans to offer tax incentives for plug-in hybrid vehicles and credit guarantees for pick-up truck purchases. Meanwhile, Japanese automakers are seeking government assistance for a car trade-in and scrapping scheme to stimulate domestic sales.