Multiple manufacturers, from state-owned enterprises to renewable energy startups are jumping into Thailand market of electric vehicle batteries, driven by the government’s motivation to make the country into a regional production hub for EVs and their components. Global Power Synergy also known as GPSC, the utility arm of Thailand’s state-owned oil and gas conglomerate PTT Group, will spend around 2.7 billion baht this year to develop EV batteries in the country’s Eastern Economic Corridor. The project incorporates an EV battery plant and the creation of an associated supply chain.
“We will not only build an EV battery plant and develop EV battery technology but will also create an EV value chain and integrated ecosystem, which is key to our goal of becoming a leading EV-producing country in the region,” said Buranin Rattanasombat, senior executive vice president of PTT Group. GPSC recently signed an MoU in February with Arun Plus another PTT subsidiary, with the goal of producing EV batteries with an annual capacity of 5 to 10 gigawatt-hours by 2030. Which is enough to power more than 200,000 compact EVs.
In lieu of the subsidies and lowered tariffs, the Federation of Thai Industries has predicted that domestic sales of EVs will exceed 10,000 units this year, more than quadruple the 1,954 units sold in 2021. “This year is a golden year for EVs, as we see a sharp rise in demand, and that encourages more players to jump in the battery market,” said an analyst at Kasikokrn Research Center.
Last year the Thailand government decided to invest 192 million baht in a zinc-ion battery plant in the Eastern Economic Corridor. The project will be managed by the National Science and Technology Development Agency, which enunciated that zinc-ion batteries are safer and more eco-friendly than their lithium-ion counterparts.
The investments targeted a capacity of 380 MWh for 2021, which is expected to rise to 1,000 MWh over the next few years.