Sunwoda To Invest $1 Billion In Thailand To Accelerate Electric Vehicle And Battery Production

Thailand Board of Investment (BOI) has recently announced that Thailand's Commission on the National Competitiveness Enhancement for Targeted Industries has given a green signal to an investment of over $1 billion by a subsidiary of Sunwoda Electronic for the production of electric vehicle (EV) and energy storage system (ESS) battery cells. This investment aims to expand the country's supply chain and support EV manufacturing for local and export markets.

The Commission operates under the Thailand Board of Investment (BOI) and is chaired by Deputy Prime Minister and Minister of Finance Pichai Chunhavajira. It was set up back in 2017 to facilitate industrial development.

The information shared by the authorities highlight that Sunwoda Automotive Energy Technology (Thailand) Co., Ltd. plans to set up manufacturing facilities in the Eastern Economic Corridor. The first factory in Chonburi Province will produce lithium-ion battery cells for EV manufacturers. The facility is expected to employ over 1,000 workers when production begins. The larger project will include manufacturing, research, and product development, requiring additional workers, including engineers and researchers.

Sunwoda, based in Shenzhen, China, is into production of batteries for electronic devices, transportation and storage systems. In 2023, its SEVB brand reported the highest sales of hybrid electric vehicle (HEV) batteries in China and ranked third in high-end EV battery sales. The facility in Thailand will be its first in the ASEAN region for EV-related battery cell production.

Thailand has been a production base for internal combustion engine (ICE) vehicles and was ranked 10th globally and first in Southeast Asia in 2023. Government policies have been rolled out to encourage investment in EV production, including financial incentives. Several Chinese battery electric vehicle (BEV) manufacturers including the likes of BYD, SAIC Motor, Great Wall Motor, Hozon and GAC Aion, have set up production facilities in Thailand.

The EV sector in Thailand includes charging infrastructure, local charger production, battery pack and module assembly from imported cells. In 2024, applications for investment promotion in Thailand increased by 35 percent in value, reaching 1.14 trillion baht, the highest level since 2014. The automotive and parts sector accounted for 309 projects, valued at 102.4 billion baht.

Narit Therdsteerasukdi, Secretary General of the BOI, stated, “Today marks a milestone in the development of Thailand’s EV supply chain, as having EV battery cells produced locally will significantly reinforce our status as a manufacturing hub for EVs and hybrids, and increase the country’s competitiveness. This project will also help widen the use of ESS and solar energy in our country, and, through the hiring of thousands of Thai engineers and workers, contribute to knowledge transfer in an industry which is of critical importance for the future”.