US' Tesla to invest, expand EV facilities in Malaysia

Market: Battery materials, Emissions, Metals
21/07/23

US electric vehicle (EV) maker Tesla will invest and establish EV charging stations in Malaysia, according to Malaysian Investment Development Authority (Mida) on 20 July.

The amount of investment was undisclosed but the expansion includes significant investment in setting up fast-charging and regular-charging stations at strategic locations, as well as a head office in the Selangor state.

This was in response to the nation's Battery Electric Vehicle Global Leaders initiative that was launched by Malaysia's ministry of investment, trade and industry (Miti), and Tesla is the first applicant under the initiative, said Miti minister Tengku Zafrul Aziz.

The announcement came around a week after Malaysian prime minister Anwar Ibrahim made a tweet on 14 July that showed him having a virtual meeting with Tesla chief executive officer Elon Musk. Tengku and Malaysia's minister of communications and digital Fahmi Fadzil were also participants in the meeting, according to a tweet by Fahmi.

The investment is one of the latest investments in Malaysia's EV sector, and comes after a recent spate of investments from Japanese, Korean and Chinese firms started flowing into the country.

Mida approved 58 EV-related projects totalling 26.2bn ringgit ($5.75bn) from 2018 to March 2023, which range from EV assembly, EV parts manufacturing and components as well as charging components.

"We are pleased that Tesla has chosen Malaysia as one of its destinations for their expansion in southeast Asia," said Tengku. "Their commitment to sustainable mobility is closely aligned with Malaysia's vision for a greener future, and our New Industrial Master Plan 2030's push for net zero."

Tesla raised its EV production by around 86pc on the year to 479,700 units in April-June from 258,580 units. Production of its Model 3 and Model Y drove most of the gains. Tesla also plans to introduce the two models to the Malaysian market, and may introduce more models in the future.

Tesla will contribute significantly to the country's goal of achieving carbon neutrality by 2050, in line with its pledge to cut carbon emissions under the United Nations Framework Convention on Climate Change, said Mida.

Malaysia, under its Low Carbon Mobility Blueprint (LCMB) 2021-30, is aiming to have EVs make up at least 15pc and 38pc of total industry volumes by 2030 and 2040, respectively. The LCMB framework aims to cut the nation's transportation emissions that contribute to around 25-30pc of its national greenhouse gas emissions.

"The country aims to install 10,000 EV charging points by 2025 through the Low Carbon Mobility Blueprint, with up to 900 charging points at present," said natural resources, environment and climate change minister (NRECC) Nik Nazmi Nik Ahmad as Malaysia held its first national-level EV conference on 14 February. "NRECC is also committed to increasing electricity generation from renewable energy sources through the Electricity Supply Generation Development Plan 2021-2039 while strengthening the grid and developing the EV ecosystem."

By Joseph Ho

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