FRIDAY, April 19, 2024

BOI gears up to woo top EV battery makers in China at roadshow from Sunday

BOI gears up to woo top EV battery makers in China at roadshow from Sunday

The Board of Investment is taking a roadshow to China to woo leading battery cell manufacturers to invest in Thailand, the BOI chief said.

This push is part of Thailand’s plan to become an electric vehicle (EV) manufacturing hub.

Narit Therdsteerasukdi, BOI secretary-general, said on Thursday that the roadshow will be held in Guangdong and Fujian provinces for four days from Sunday, and the aim will be to explain the incentives offered to EV battery cell makers if they use Thailand as their production base.

The leading Chinese EV battery makers that BOI will try to woo include Contemporary Amperex Technology (CATL), China Aviation Lithium Battery (CALB), Inpow Battery Technology (IBT), Eve Energy, Gotion High-tech, Sunwoda and SVOLT Energy Technology.

He said BOI executives will meet executives from the battery manufacturing companies to explain the measures approved by the National Electric Vehicle Policy Committee (EV board) on February 21. These measures were endorsed by the committee in charge of enhancing Thailand’s competitiveness in targeted industries on February 29.

Narit said the government wanted to build an EV battery cell manufacturing industry in the country because it requires advanced technology and a large investment.

He said EV battery manufacturers will be required to meet four criteria to receive full BOI incentives. They are:

• Must be among leading EV battery manufacturers whose batteries are used by EV manufacturers

• Must set up factories to make battery cells, and can develop energy storage systems at the same time

• Must produce battery cells with a capacity of at least 150Wh (watt-hours) per kilogram of battery weight

• Their battery cells must be capable of at least 1,000 recharging life cycle

Among the privileges offered by BOI is a maximum of 15 years of exemptions on corporate tax, tax on dividends, import duty on machines and import duty on materials imported for export later.

The battery makers will also be entitled to a 90% reduction on import duty for materials to be used in products that will be sold in Thailand, in addition to an import duty exemption on materials used in research.

Narit said the battery makers who are eligible for investment privileges will also receive subsidies in investment, research and the training of personnel.

He said the BOI will negotiate with Chinese battery makers on a case-by-case basis by taking into account investment plans, manufacturing capacity, connections to EV makers, technologies and knowledge transfer plans.