KUALA LUMPUR: EVE Energy Co Ltd, a China-based lithium battery production company, will build a US$422.3 million cylindrical battery production base in Malaysia.
The manufacturing facility will support electric two-wheelers and power tools manufacturing enterprises in the country and across Southeast Asia.
This would enhance the company's comprehensive competitiveness for the electric two-wheeled vehicle and power tool in the global market share, EVE said in a joint statement with the Malaysian Investment Development Authority (MIDA) today.
"The project will be constructed in phases with a construction period of no more than three years," it added.
MIDA chief executive officer Datuk Arham Abdul Rahman said the transition to electric vehicles (EV) would be one of the most significant shifts in Malaysia's automotive sector in generations.
Arham said the full-fledged cylindrical lithium battery ecosystem resonated well with the National Investment Aspirations (NIA) and National Automotive Policy 2020 (NAP2020).
"This will stimulate and synergise the country's EV ecosystem specifically for EV battery production. Equipped with highly-skilled talents and proficient technology experts, Malaysia is certainly a conducive and an ideal location for the success of EVE's investment," he added.
EVE is evaluating several sites for the manufacturing facility in Malaysia, including a few in Perak.
EVE Energy Malaysia representative director Joe Chan said the company's goal was to provide customers with high quality batteries.
Can said in the past few years of rapid development, EVE had become the world's leading lithium primary battery brand and was ranked No. 1 in China.
"Last year, EVE was ranked no. 12 in Fortune Future 50 and recognised as a top market player in the green energy ecosystem. At this moment, this is an important milestone of EVE to expand our business to Malaysia and enhance our global market share in the electric two-wheeled vehicle and power tool batteries market.
"The establishment of EVE Energy's cylindrical battery production base in Malaysia will help to supply high quality batteries to companies in the country and Southeast Asia," he said.
EVE was established in 2001 and listed in 2009.
After 21 years of rapid development, the company has now become a multinational company focusing on lithium battery powering solutions.
MIDA had approved 25 projects totalling RM10.69 billion in the EV and its related ecosystems from 2020 to June 2022.
These included the activity of EV assembly, manufacturing of EV parts and components and its charging components.