EVE Energy Co. Ltd., a China-based global lithium battery manufacturer, has on Monday announced the groundbreaking ceremony for its new manufacturing facility in Kulim, Kedah, Malaysia with an initial investment of $422 million.

EVE Energy and Malaysian Investment Development Authority (MIDA) said in a joint statement that the new factory, which will be EVE’s 53rd, will focus on the production of cylindrical lithium-ion batteries to support power tools and electric two-wheelers manufacturing in the country and across Southeast Asia.

EVE Energy Malaysia Sdn. Bhd. Director Joe Chen said that relying on EVE’s domestic advantages and operational experience, the firm will build a cylindrical battery production base in Malaysia to support the electric two-wheelers and power tools in Malaysia.

According to him, this initial project will be constructed in phases, and the construction period will not exceed three years.

“This is an important milestone for EVE to expand our global businesses, enhance our comprehensive competitiveness and to further grow our global market share,

“And most importantly, to let us contribute to the development of electrical power ecosystem in Malaysia,” he added.

MIDA Deputy Chief Executive Officer (Investment Development) Ms. Lim Bee Vian said that the investment marks a crucial milestone that not only benefits EVE but also paves the way for more companies to invest in Malaysia in EV industry and its ecosystems.

“By collaborating with industry leaders like EVE, we can foster an environment of innovation and technological advancement,” she said.

She also said this project aligns perfectly with Malaysia’s Twelfth Malaysia Plan (12MP) and the National Automotive Policy 2020 (NAP), as the country is committed to achieving net-zero greenhouse gas emissions by 2050.

“By establishing this cylindrical battery manufacturing plant in Malaysia, we demonstrate our commitment to competitiveness in the international market,” she said.

She also said the country’s robust ecosystem, supported by strong research and development (R&D) and standards facilities (through agencies like SIRIM), along with a thriving components’ sub-sector, positions the country to cater to the entire EV value chain.

Established in 2001, EVE was first listed on Shenzhen GEM in 2009.

After 22 years of rapid development, Ethe firm is now a global lithium battery company which possesses core technologies and solutions for consumer batteries, power batteries and energy storage batteries.

MIDA is Malaysian government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in the country.

The agency has 12 regional and 21 overseas offices.

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