Thailand woos Chinese EV investment, secures Chery

Spanish Market: Battery materials
23/04/24

Chinese state-owned auto producer Chery Automobile will build an electric vehicle (EV) factory in Thailand after more than two years of discussions with Thailand's Board of Investment (BOI), which has secured multiple other EV-related investment.

Chery will build a plant in Rayong province with a first phase capacity of 50,000 unit/yr of battery and hybrid EVs, which is scheduled to begin production in 2025, BOI said on 22 April. The plant's capacity is expected to be expanded to 80,000 unit/yr by 2028 in a second phase. Chery's project has also been approved by BOI for the country's investment promotion. Thailand's investment promotion strategy grants successful projects tax and non-tax incentives.

BOI secretary-general Narit Therdsteerasukdi this month met executives from seven Chinese battery manufacturing firms, including Gotion High-tech, China Aviation Lithium Battery and the world's largest battery producer CATL. Two major manufacturers are expected to invest in cell-level battery production in Thailand this year, which will each come with 6-10 GWh of capacity in their first phase and with a combined investment value of over 30bn baht ($810mn).

All the firms were interested in Thailand's incentives for EV battery manufacturers, said Narit.

"I believe that in two years Thailand will have a large-scale battery cell factory. This will be another milestone to strengthen the supply chain and the long-term foundation of the electric vehicle industry in Thailand," said Narit.

Thailand aims to attract Bt1 trillion of investment for its future automobile industry by 2030 as it seeks to become a future mobility hub, Thai prime minister Srettha Thavisin said in February. The country has since secured Bt240bn of investment from Japanese car producer Isuzu.

Thailand last year also secured Bt9.8bn of investment from Chinese major auto manufacturer Changan Automobile, similarly after two years of discussions.

Thailand's EV registrations in 2023 more than quadrupled from a year earlier to nearly 90,000 units, reaching a 10pc vehicle sales share that is comparable to the US, according to the IEA's Global EV Outlook 2024.

By Joseph Ho

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15/04/25

South Korea's March car output rises, exports dip

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GM stopping, slowing Ontario EV van production

14/04/25

GM stopping, slowing Ontario EV van production

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S Korea unveils auto industry support after US tariffs

09/04/25

S Korea unveils auto industry support after US tariffs

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Asian governments hold fire on tariff retaliation

07/04/25

Asian governments hold fire on tariff retaliation

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US battery costs face sharp rise on tariffs

03/04/25

US battery costs face sharp rise on tariffs

London, 3 April (Argus) — Battery cells imported into the US market face a sharp cost increase following the imposition of US president Donald Trump's new tariff regime. The US last year imported $23.8bn worth of battery cells, according to trade data, mostly from China, Japan and South Korea, all of which have been hit with "reciprocal" tariffs after Trump's executive order was signed on 2 April. China, by far the largest supplier of battery cells to the US market, is now subject to an effective 64.9pc tariffs, with the extra 34pc duty on top of other tariffs from previous administrations. Battery cell imports to the US from China last year amounted to $16.45bn, 70pc of the total, up from just $2bn in 2020. The new tariffs would add $8bn to this cost for US carmakers and battery pack producers. Japan and South Korea, long-standing US allies and partners in battery cell production, face tariff rates of 24pc and 25pc, respectively. The US last year imported $1.7bn worth of battery cells from Japan and $1.3bn from South Korea. Despite the tariffs, there is potential that Japan and South Korea could eat into China's share of US imports, because of the gulf between their respective tariff rates and being the world's only real alternative producers at this point. A longer-term outcome could be that the US domesticates some of this battery cell production, a trend that was already under way, thanks to Biden's Inflation Reduction Act, which allocated federal funding to battery giga-factories and other battery-related projects throughout the US. But building battery cells is not simple. The US will need access to raw materials, some of which are heavily affected by the new tariffs. Cell-making technology, controlled by the three Asian countries, could be included in any retaliatory measures. "The Trump administration's 'Liberation Day' announcement on tariffs are the biggest trade shock in history, representing a historic shift away from the long-term trend towards free trade," chief economist at investment bank Macquarie Ric Deverell said. "The tariff increase far exceeds earlier expectations, highlighting the strong 're-industrialisation' ideology of the Trump administration." Battery materials impact mixed The impact on key materials for the battery supply chain is mixed, with some metals and pre-cursor materials exempted from the new measures, while some key materials are included. Lithium carbonate, lithium hydroxide, cobalt sulphate, cobalt metal, manganese dioxide, natural graphite powder and flakes all are exempt from new additional tariffs. Key materials that are not exempt include nickel sulphate, manganese sulphate, phosphoric acid, iron phosphate and synthetic graphite, all of which will be included in the tariff regimes implemented on individual countries. The US has no nickel sulphate production and imports most of its material from Belgium and Australia, which exported 1,872t and 1,060t to the US last year, respectively. Tariffs on Belgium will fall under the EU, which will be applied at 20pc, while Australia is subject to a tariff of 10pc. Indonesia, the world's largest nickel producer, is subject to a tariff of 32pc, although so far it has not supplied material to the US. Total US imports of nickel sulphate last year reached 3,738t, up from just 1,125t in 2020. With regard to synthetic graphite, another essential item for battery cell production, the US imported 115,778t in 2024, up substantially from 30,109t in 2020. Most of this came from China, at 74pc of the import market. This material now will be subject to 54pc tariffs, significantly increasing this cost for US battery cell producers. By Thomas Kavanagh and Chris Welch US lithium-ion battery imports by country $bn Feedstock materials exempt from 2 Apr tariffs t US manufacturing investments by stage of supply chain $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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