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Thailand has taken a significant step toward becoming a global leader in electric vehicle (EV) production with the approval of a US$1 billion investment by Sunwoda Automotive Energy Technology, a subsidiary of China’s Sunwoda Electronic. This investment will fund the construction of EV and energy storage system (ESS) battery cell manufacturing plants in Thailand’s Eastern Economic Corridor. The move strengthens Thailand’s supply chain, supports its growing EV manufacturing sector, and enhances its competitiveness in both domestic and export markets. This development also aligns with the country’s push toward sustainable energy and economic growth.
Key Highlights
- Massive Investment: Sunwoda’s project exceeds US$1 billion, marking a major foreign direct investment in Thailand’s EV ecosystem.
- Local Production: The first factory in Chonburi Province will produce lithium-ion battery cells, reducing reliance on imported components.
- Job Creation: The initiative will employ over 1,000 workers, including Thai engineers, fostering knowledge transfer in a critical industry.
- Sustainability Boost: The project supports broader adoption of ESS and solar energy in Thailand.
Thailand’s Commission on the National Competitiveness Enhancement for Targeted Industries, chaired by Deputy Prime Minister and Finance Minister Mr. Pichai Chunhavajira, greenlit the investment during a recent meeting. The commission, overseen by the Thailand Board of Investment (BOI), aims to promote industries that drive economic value and sustainability. According to Mr. Narit Therdsteerasukdi, BOI Secretary General, “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.”
Sunwoda’s entry into Thailand builds on the country’s established reputation as a powerhouse in the automotive industry. In 2023, Thailand ranked 10th globally and first in Southeast Asia for conventional vehicle manufacturing. Since introducing EV-friendly policies—such as subsidies and tax incentives—the nation has attracted major players like BYD, SAIC Motor, and Great Wall Motor. Sunwoda’s Chonburi facility, currently under construction, represents its first EV battery cell plant in the ASEAN region, further solidifying Thailand’s role in the electrification shift.
The broader impact of this investment extends beyond manufacturing. With plans for research and development, Sunwoda aims to innovate within Thailand, employing a substantial number of local engineers and researchers. This aligns with Thailand’s 2024 investment surge, where applications for promotion hit 1.14 trillion baht, driven by foreign investments in tech and automotive sectors. The automotive industry alone saw 309 projects worth 102.4 billion baht, underscoring its economic significance.
Thailand’s EV ecosystem continues to expand, supported by a growing network of charging stations and local production of key components. As Sunwoda’s factories come online, the country is poised to strengthen its position as a regional leader in sustainable mobility and energy solutions.
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