On April 7-10, Thailand’s National Investment Commission (NIC) organized a delegation to visit leading power battery companies in Guangdong and Fujian and expressed its full support for Chinese battery companies to invest in Thailand. Since 2020, Thailand’s electric vehicle industry has been growing exponentially, with electric vehicle sales reaching 76,000 units in 2023, a 650% increase.
According to Thailand’s Electric Vehicle Policy Council plan, 725,000 electric passenger cars and pickup trucks, 675,000 electric motorcycles, and 34,000 electric buses/trucks will be produced in Thailand by 2030. Therefore, the power battery, electronics, and parts manufacturing industries, as an important part of the tram supply chain, will benefit from the growth of the electric vehicle market in Thailand, especially in the following areas: power batteries, vehicle electronics circuit boards, electric motors, and electric vehicle parts.
Thailand has long been the largest production base for internal combustion engine vehicles in ASEAN, with deep industrial roots, perfect human resources, infrastructure and logistics systems, and smooth trade channels with the EU, the U.S., and Australia, which are not affected by the trade war. In the face of the rise of electric vehicles, the Thai government aspires to seize the new opportunity to become one of the world’s electric vehicle production bases. To this end, the Thai government has launched more favorable policies to promote the development of the tram and battery industries this year:
- Subsidies of 30%-50% of the investment amount for the construction of battery plants.
- Exemption from corporate income tax for 15 years and tax-free dividends.
- Exemption of import duty on machinery and import duty for R&D purposes.
- Exemption of import duties on raw materials for export production Exemption of import and export duties on equipment.
To apply for the above benefits and financial support from the National Competitiveness Fund, investors must fulfill four basic conditions:
- Must be a manufacturer of power batteries for electric vehicles.
- Must have plans to produce battery cells for electric vehicles. Must also produce battery cells for energy storage systems (ESS).
- Must produce battery cells with an energy value of not less than 150 Wh/Kg.
- Battery life cycle of not less than 1,000 cycles.
The deadline for submitting investment project proposals is the end of 2027, and manufacturers interested in the ASEAN market and its radiating regions need to act quickly. At present, Ningde Times, Guoxuan Technology, Hive Energy, Panasonic of Japan, Samsung of South Korea, LG, SK Battery, etc. have already invested or are planning to invest and set up factories in Thailand.