Chinese high-tech enterprise Anwha (Shanghai) Automation Engineering has chosen Thailand's Eastern Economic Corridor as its first overseas production base to make batteries for electric vehicles (EVs) under the MG brand.
"The factory will be located near the MG plant in Chon Buri," said Anwha's business development consultant Jay Teo, referring to a car assembly facility operated by Thai-Chinese joint venture SAIC Motor-CP, the manufacturer of MG cars.
"We are in the process of designing our factory."
Anwha plans to allocate 250 million baht for the construction.
Founded in 2021, the company specialises in battery technology, factory automation solutions and robotic systems.
Mr Teo said Anwha decided to expand its business into Thailand because the country has the potential to develop EV and battery supply chains. He said the country also sits in a prime location connected with many Asean nations.
Thailand is well-known as a major car manufacturer.
"Labour skills and technology are also factors that make Thailand an attractive investment destination," Mr Teo said.
Anwha is also interested in battery recycling and is conducting a feasibility study on this business.
"Battery recycling may be part of the next phase of investment. This is part of the company's long-term plan," he said.
"Now Anwha wants to focus on battery production, especially modules, in Thailand."
More Chinese companies have been investing in Thailand following the government's policy to build up the EV industry.
The National EV Policy Committee announced in 2021 that it wanted EVs to constitute 50% of locally made vehicles by 2030, part of an ambitious plan to make Thailand a regional EV hub.
The Thai Board of Investment (BoI) has approved 26 EV investment project proposals valued at 86.8 billion baht from 17 foreign companies, mostly carmakers.
Chinese carmaker Changan Automobile earlier announced it would invest 9.8 billion baht to set up its EV business in Thailand, according to the BoI.
The firm plans to make EVs in three categories -- battery EVs, plug-in hybrid EVs, and range-extended EVs -- as well as batteries for domestic sale and export.
