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Malaysia Sustainable High-Tech Battery Manufacturing

A significant milestone was achieved in the tech industry as a Memorandum of Understanding (MoU) was signed between a China-based energy firm and a real estate developer in Kuala Lumpur. The agreement paves the way for the establishment of an advanced manufacturing facility in Malaysia.

Situated in Kulim, Kedah, this state-of-the-art plant represents a substantial investment of up to US$ 422.3 million. It will serve as a hub for the production of cutting-edge cylindrical lithium-ion batteries, specifically designed for power tools and electric two-wheelers.

Additionally, this project has the potential to create 600 high-quality job opportunities, fostering local economic growth and enhancing the employment sector. The successful realization of this endeavour will also contribute to the development of an International Cylindrical Battery Industrial Park in Malaysia.

The Minister of Investment, Trade and Industry (MITI) highlighted the importance of battery manufacturers in unlocking the full potential of electric vehicles (EVs). The establishment of an advanced manufacturing facility in Kulim, Kedah, dedicated to the production of cylindrical lithium-ion batteries demonstrates Malaysia’s commitment to this goal. Collaborations with industry leaders will drive innovation, improve battery performance, and make significant contributions to the global shift towards sustainable mobility.

This Memorandum of Understanding (MoU) is expected to greatly stimulate local economic growth, generate employment opportunities, and enhance the skills of local workers, consequently supporting the development of local support, research and development, and associated industries.

The Malaysian government is committed to fostering an environment conducive to the success of global innovative enterprises, enabling mutually beneficial and win-win collaborations. The government extends its sincere wishes for fruitful outcomes that surpass expectations.

The signing of the MOU represents a significant step forward for the battery manufacturer’s project in Malaysia, addressing the company’s need to expand the production capacity of cylindrical batteries to cater to the growing demand from electric two-wheeler and power tool manufacturers in Malaysia and Southeast Asia.

Leveraging its domestic manufacturing strengths and expertise, the company’s Malaysian facility will continuously pursue technological advancements. Its goal is to become an advanced manufacturing and digitally driven smart battery factory of global significance. This will not only boost the company’s presence in international markets for electric two-wheelers and power tools but also enhance its overall competitiveness in the battery manufacturing sector. Simultaneously, it will expedite the company’s overseas expansion efforts and contribute to Malaysia’s economic development.

The Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), welcomed the establishment of advanced manufacturing facilities in Malaysia, expressing MIDA’s commitment to attracting high-quality investments that bolster the electric vehicle (EV) supply chain and ecosystem in the country. He expressed optimism regarding the increasing popularity and mainstream adoption of EVs, particularly driven by the rising demand for sustainable transportation in the ASEAN region.

MIDA actively initiates measures to position Malaysia as the preferred sustainable investment destination and a key player in the global value chain, with a specific focus on becoming a preferred technology partner for EVs. These efforts are aligned with the National Investment Aspirations (NIA) and the New Investment Policy (NIP). Assuring continued support, MIDA will facilitate the successful implementation of projects and future expansions in Malaysia by companies involved in the EV sector.

From 2018 to 2022, the Malaysian Investment Development Authority (MIDA) has given its approval for 54 projects with a total investment of RM 22 billion, focusing on the electric vehicle (EV) industry and its associated ecosystems. These investments cover various areas such as EV assembly, manufacturing of EV parts and components, and the production of charging components.


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