March 13, 2025 – Bangkok: Thailand’s Investment Board has approved a $1 billion investment from China’s Sunwoda Electronics to establish a new electric vehicle battery plant in Chonburi Province. The new facility will be built by Sunwoda Automotive Energy Technology (Thailand) and will focus on producing lithium-ion cells for EV manufacturers.
Sunwoda’s investment in Thailand aligns with its strategy to expand its global footprint in the EV battery and lithium ion battery sectors. The new plant will be used by the company to manufacture lithium-ion battery cells for EV manufacturers. It will not only help meet growing EV battery demand but also enhance Thailand’s status as a manufacturing hub for EVs and hybrids.
Thailand is the largest auto production and export center in Southeast Asia as well as home to giants like Honda and Toyota. The region is attracting massive investments, especially from Chinese electric vehicle and battery manufacturers. For instance, according to the EV Industry Association, Chinese EV makers such as Great Wall Motor and BYD have invested more than US$ 3 billion into the country.
Sunwoda’s new production plant will likely boost lithium-ion battery market growth. It will enhance supply chain resilience, reduce costs, foster innovation, and accelerate the global transition to electric mobility.
According to Coherent Market Insights (CMI), the global lithium ion battery industry is projected to record a robust CAGR of 17.3% through 2032. Rising production and sales of electric and hybrid vehicles will play a key role in driving this growth.
“Establishment of new EV battery plants, such as Sunwoda’s, across different regions is anticipated to support expansion of the lithium ion battery industry during the assessment period, says a senior analyst at CMI.”
With more electric and hybrid vehicles entering production, demand for EV batteries such as lithium-ion batteries is expected to rise. This will likely create lucrative revenue-generation opportunities for companies like Sunwoda.
The world is witnessing a transition towards eco-friendly vehicles owing to growing environmental concerns. As a result, demand for electric vehicles is anticipated to rise rapidly, which, in turn, will create growth prospects for lithium ion battery manufacturers.
The new facility in Thailand will help Sanwoda to meet growing demand from EV and hybrid manufacturers. Higher battery production capacity will empower manufacturers to develop more EVs at a lower cost. This will encourage adoption of electric mobility not only in Thailand but in other nations as well.
Sources:
News Outlet: Reuters
Government Agency: Thailand Board of Investment
