Thai energy giant takes a stake in SVOLT's overseas battery plant
Chinese lithium-ion battery company SVOLT Thailand has received investment from a local energy giant.
On October 11, SVOLT Energy announced on its official Weibo that its subsidiary, SVOLT Energy Technology Thailand Co., Ltd. (hereinafter referred to as SVOLT Thailand), signed a strategic cooperation agreement with Banpu NEXT, a subsidiary of Thai energy supplier Banpu Group (Banpu), on October 10.
Banpu NEXT will invest in Hive Thailand for a 40% stake. SVOLT said it was the first time that its Thai subsidiary had attracted a stake from a local partner since its establishment in July. SVOLT did not disclose the exact amount of the investment.
According to the agreement, the two parties will also carry out in-depth cooperation in the development, production and sales of on-board power batteries, two-wheeled and three-wheeled vehicle batteries, energy storage, recycling and other fields.
Founded in 1983 and headquartered in Thailand, Banpu Group's core business includes three parts: energy resources, energy power generation and energy technology, with operations in Thailand, China, Indonesia, Australia and other places. The Company operates three cogeneration power plants, seven photovoltaic power plants and two joint venture coal mines in China.
In July this year, SVOLT held a groundbreaking ceremony for its Thailand module battery pack plant in Sriracha City, Chonburi Province, Thailand, which is operated by SVOLT Thailand. The module battery pack plant is a local leased factory in Thailand and is scheduled to be completed by the end of the year, with an estimated production capacity of 60,000 module battery packs per year.
According to SVOLT, 90% of Thailand's new energy vehicle market is Chinese brands, of which well-known companies such as Great Wall and Hezhong are important customers of the company, and SVOLT Thailand was established to serve these customers.
Yang Hongxin, chairman and CEO of SVOLT, said at the 4th International Exchange Conference on New Energy Vehicles and Power Batteries this year that SVOLT's strategy to go overseas is a business-oriented globalization strategy, that is, to revolve around customers, and the company also hopes that the supply chain can work together to go overseas.
As early as 2020, SVOLT began its overseas operations, and that year, the company announced that it would build its first overseas factory in Saarland, Germany, mainly to produce battery packs. In September 2022, the company announced the construction of a second overseas plant in Brandenburg, Germany, for the European market, mainly engaged in the production of battery cells. Batteries usually adopt the assembly mode of cell-module-battery pack, and the battery cell is the smallest unit that makes up the battery pack.
According to Bloomberg, Lim Chu Chin, chairman of the Chinese Chamber of Commerce and Industry of Thailand, said that Chinese automakers are pouring into Thailand thanks to Thailand's recent investment incentives. Since the beginning of this year, a number of Chinese new energy vehicle manufacturers such as BYD, Nezha Automobile, and GAC Aion have gone overseas to Thailand.
In terms of power batteries, in addition to SVOLT, a number of Chinese battery companies, including Gotion Hi-Tech (002074.SZ) and EVE Lithium Energy (300014.SZ), have also laid out the Thai market.
Gotion Hi-Tech has established a joint venture with Thai energy solutions company Nuovo Plus to build a pack production line for lithium-ion power batteries in Thailand's Eastern Economic Corridor region, with the first phase of the production line expected to be put into operation in the fourth quarter of 2023.
EVE has established a joint venture with Energy Absolute, a Thai energy company, and plans to build a battery production base of at least 6 GWh with the joint venture as the main body, focusing on the production and sales of power energy storage batteries and other products.
