Plans to develop a lithium-ion battery manufacturing hub in Malaysia have been instigated following a Memorandum of Understanding (MoU) between Hong Seng Consolidated Berhad and EoCell.
Malaysia-based investment firm Hong Seng and US-based battery anode firm EoCell will partner to manufacture EV batteries and progress to energy storage solutions (ESS) that will eventually be supplied to EV manufacturers, assemblers and users in the Southeast Asian region.
The MoU signals the parties’ identification of Malaysia as a suitable location to scale up the EV battery and ESS sector to serve the Southeast Asian region.
Hong Seng will help identify and propose locations for the facility, propose suitable consultants to undertake the necessary studies and liaise with the Malaysian government to obtain incentives and necessary authorisations
EoCell is expected to provide licenses of battery and manufacturing technology for EV batteries, relevant industry and technology knowledge in relation to the implementation of the MoU, and expertise in battery production-line design and installation.
The MoU is non-binding statement of the parties’ intentions.
Subject to the negotiation of a definitive agreement, the parties intend to enter into a joint venture agreement and set up a new joint venture company.
Hong Seng Group managing director Dato’ Seri Teoh Hai Hin, said: “The Malaysian government has earmarked clean energy and electric vehicle industries as one of the growth sectors for the country, and as the nation is striving for a greener world and decarbonisation by replacing combustion engine vehicles with Electric Vehicles, the demand for batteries will experience an exponential growth.
“We are confident that the vision to develop Malaysia into the centre of battery technology and manufacturing for Southeast Asia will materialise with the Malaysian government’s strong support, the country’s strategic location in the centre of Southeast Asia, and Malaysia’s neutral political position which will be able to encourage bilateral trades among the countries involved.”
Dato Michael Loh, chief executive officer of EoCell said: “We believe Hong Seng is poised to become one of Southeast Asia’s leading battery producers with a focus on sustainable production facilities powered with clean green energy.
“The Southeast Asian electrification movement is underway, and Hong Seng has a great strategy to fulfil this upcoming demand.”
Prismatic battery deal
Silicon Valley, California-based EoCell is a research and technology company specialising in the design and development of nano-silicon anode materials and non-flammable electron technologies for advanced silicon and solid-state batteries.
In April, the firm signed a deal with lithium-ion gigafactory firm Morrow Batteries to commercialise a prismatic battery for the automotive industry.
The Master Development Agreement will see the firms collaborate on a battery that can be produced at a suitably high scale to meet electric vehicle manufacturers’ demand.