Hyundai to build EV and battery assembly plant in Thailand

Thailand’s Board of Investment (BOI) has now given the green light, saying that the new project “supports Thailand’s EV 3.5 package, enhancing the nation’s role as an EV hub.” The new facility will be located southeast of the capital Bangkok. It is not clear how many battery-electric cars will roll off the production line there or which ones. However, the BOI states that “the facility will also assemble an equal amount of EV batteries.”

“Hyundai’s entry in Thailand’s EV sector is a very positive development, confirming the attractiveness of Thailand as both a manufacturing base and an important market,” said Narit Therdsteerasukdi, Secretary General of the BOI. “Thailand’s strong existing supply chain will allow Hyundai to source not less than a third of the raw materials and parts it needs from within Thailand, thus supporting the local industry.”

It is also not clear whether Hyundai will receive funding from the Thai government. Under the above-mentioned EV 3.5 package, it does provide incentives to manufacturers as well as subsidies to consumers purchasing EVs – but it is not clear from the BOI statement whether that also applies to Hyundai. But it is likely, especially since 28 million dollars is not a lot of money to set up an EV and battery assembly. Just for comparison: GAC Aion just recently opened its assembly plant in Thailand and invested 59.2 million dollars.

What is clear is that Thailand hopes to become an electric mobility hub. It wants electric vehicles to make up 30 per cent of vehicle production by 2030. It has thus been in talks with several carmakers and automotive suppliers.

Neta is building a plant there, as is Changan, and the MG4 has also been in production in Thailand since November. There are also a number of battery projects, for example from Eve Energy, SVOLT and Gotion High-Tech. And just in July, BYD opened its first plant in the region in Thailand. Moreover, there have been reports that the Thai government is in talks with Kia and Tesla, who may also be interested in setting up production facilities in the country.

However, Tesla has apparently put its plans for a car factory in Thailand, including battery manufacturing, on hold and will focus solely on charging stations, reports The Nation, citing a source in the Thai government. “Tesla is currently only discussing charging stations, with the factory plans suspended not just in Thailand but worldwide. They are not proceeding in Malaysia, Indonesia, or anywhere else except for China, America, and Germany,” the source said.

boi.go.th, reuters.com, bangkokpost.com, nationthailand.com (Tesla)