Gotion High Tech, a Chinese battery manufacturer backed by Volkswagen, will work with PTT Group to produce and export battery packs and modules in Thailand. The Chinese company made the announcement in a Shenzhen filing Thursday.
The company stated that Gotion’s Singapore division will form a joint venture partnership with Thailand’s PTT to fund the projects. Initial registered capital is 300 million Thai Baht ($8.60million).
Gotion stated that 49% of the joint venture is owned by Gotion, and 51% are held by PTT. The company will develop batteries for electric cars and storage.
According to a Chinese company statement, production will begin at the battery pack manufacturing line located in the Eastern Economic Corridor of Thailand in the fourth quarter of 2023.
According to Li Zhen, the company’s chairman, this cooperation will aid Gotion in its global expansion.
Anhui is a China-based Gotion that counts Volkswagen as the largest investor. It plans to relocate one-third its production capacity beyond China by 2025.
Chinese battery manufacturers are increasing production in Europe and Southeast Asia in order to satisfy growing demand from global electric vehicle producers and household customers in energy storage.
Many of these companies are still hesitant to move forward with building factories in America because of concerns about higher political risk and costs.
Chinese giant CATL, a battery manufacturer, had halted plans to invest in North American battery plants due to concerns about rising costs and new U.S. rules regarding sourcing materials.