PTT partners with Foxconn to make electric vehicles in Thailand

MONDAY, MAY 31, 2021

National oil and gas conglomerate PTT has partnered with Taiwan’s Foxconn in a deal to produce electric vehicles (EVs) in Thailand.

On Monday, the two companies announced they had signed a memorandum of understanding to manufacture EVs and components at an online ceremony overseen by Prime Minister Prayut Chan-o-cha.

The deal is for an “open platform” that provides hardware and software to Thailand-based automakers, though no details of the size of investment were given.

Foxconn said will tap its own MIH industry-wide alliance of EV manufacturers to boost the platform in Thailand.

"This cooperation with PTT and the Thai government to realise the vision of sustainable development of the EV industry, demonstrates that the MIH ecosystem is growing," said Foxconn chairman Liu Young-way, as quoted by Reuters.

EV is among Thailand’s S-Curve industries being promoted via Board of Investment (BOI) incentives in areas such as the Eastern Economic Corridor (EEC).

The BOI approved EV projects worth 161 billion baht in 2020, up 9 per cent from 2018.

Thailand’s National Electric Vehicle Policy Committee has targeted production of 603,000 EVs in 2025 and 1.4 million in 2030.

The country is also eyeing production of lithium-ion batteries – in demand for EVs and renewable power.

Solar power generation is projected to grow 13.9 per cent per year, and wind power generation to grow 13.5 per cent from 2020 to 2027, according to Allied Market Research. Both use lithium-ion batteries.

Krungthai Compass research centre expects the semiconductor business to grow along with the lithium-ion battery market, opening the way for Thailand’s diode and transistor sector, which ranks as the world’s 11th largest exporter.