German auto giant Mercedes-Benz is to invest in a lithium-ion battery assembly plant in Thailand for its plug-in hybrid electric vehicles (PHEVs).
Andreas Lettner, CEO of Mercedes-Benz Manufacturing Thailand, told the Bangkok Post the EUR100 million ($122m) Samut Prakan facility is scheduled to start operations in early 2019.
Lettner declined to discuss projected production capacity but said the plant was expected to create 300 new jobs.
The battery factory is a joint venture between Mercedes-Benz and local partner Thonburi Automotive Assembly Plant.
“All locally-assembled batteries will serve Mercedes-Benz’s PHEVs in the local market and we can beef up our capacity once local demand expands,” Lettner said.
The move comes as the Thai government is working on plans to promote all aspects of the electric vehicle EV industry, including incentives for manufacturing by the private sector.
BBB reported last month that Nissan was in talks with Thailand’s government about starting battery production there, just months after selling its Japan-based electric vehicles batteries business to China.