The Board of Investment said on Thursday that it had approved a $1-billion investment from Sunwoda Electronic of China to build an electric vehicle battery plant, the latest in a series of new EV-related projects in the kingdom.
The Shenzhen-based company will create 1,000 jobs in Thailand for production of lithium-ion battery cells for EV manufacturers at a facility that would include manufacturing, research and product development, the BoI said.
Thailand is Southeast Asia’s largest auto production and export centre, home to major carmakers like Toyota and Honda. But the sector is the midst of a major slump, with output down by 10% last year to a four-year low and domestic sales and exports slumping 26% and 8.8% respectively.
In recent years, Chinese EV makers like BYD and Great Wall Motor and others have poured more than 102 billion baht into the country, according to the EV industry association.
The government this week said it plans tax incentives for plug-in hybrid vehicles and credit guarantees for pickup truck purchases.
Japanese automakers are also seeking government support for a car trade-in and scrapping scheme to stimulate sales, Reuters reported last month.