The Thailand government has approved an investment by a unit of China’s Sunwoda Electronic Co., Ltd. worth more than US$1 billion for the production of electric vehicle (EV) and energy storage system batteries at the cell level.

In a separate event, Thai Prime Minister Paetongtarn Shinawatra emphasized the government’s dedication to bolstering investor confidence to stimulate economic expansion.

“In the new global economy, nations must adapt quickly to technological changes and sustainability demands,” the Prime Minister emphasized. “Thailand is fully committed to being at the forefront of these shifts, with a clear strategy to attract high-value investments and build a thriving innovation ecosystem.”

Thailand’s Commission on the National Competitiveness Enhancement for Targeted Industries said the approval of investment by Sunwoda Electronic will strengthen the country’s supply chain and support EV manufacturing for both the domestic and export markets.

First EV-Related Battery Factory in Southeast Asia

Sunwoda Automotive Energy Technology (Thailand) Co., Ltd. plans to build its manufacturing facilities in Thailand’s Eastern Economic Corridor area. The first factory, located in Chonburi Province, will be producing lithium-ion battery cells for EV manufacturers.

“Today marks a milestone in the development of Thailand’s EV supply chain, as having EV battery cells produced locally will significantly reinforce our status as a manufacturing hub for EVs and hybrids, and increase the country’s competitiveness,” Mr. Narit Therdsteerasukdi, Secretary General of the BOI, said after the meeting. “This project will also help widen the use of ESS and solar energy in our country, and, through the hiring of thousands of Thai engineers and workers, contribute to knowledge transfer in an industry which is of critical importance for the future.”

The construction of Sunwoda’s first Thai factory is progressing smoothly. The facility will likely hire over 1,000 staff once production begins. The entire project, which will include manufacturing as well as research and product development, will employ a significantly greater staff, including a large number of Thai engineers and researchers.

Sunwoda Automotive Energy Technology (Thailand) is a subsidiary of Sunwoda Electronic, a company headquartered in Shenzhen, Guangdong Province, China, which is engaged in the production of batteries for a wide range of electronic devices, mobility, and storage equipment. In China, in 2023, Sunwoda’s SEVB brand ranked first in sales of batteries for hybrid electric vehicles (HEV) and third in sales of batteries for high-end EV. Sunwoda’s battery cell manufacturing facilities in Thailand will be its first EV-related battery cell factory in the ASEAN region.

Southeast Asia’s Automotive Hub

Thailand has long been a hub in the conventional internal combustion engine (ICE) auto industry, ranking 10th in the world and number one in Southeast Asia as a manufacturer in 2023. Since it started promoting investment in the sector’s electrification, with government policies offering subsidies, tax breaks and other incentives to manufacturers and consumers, the country has attracted significant investments in the production of EV and hybrids.

Several major Chinese manufacturers of battery electric vehicles (BEV) have already started making cars in Thailand, including BYD, SAIC Motor (MG), Great Wall Motor, Hozon New Energy Automobile (Neta) and GAC Aion. Chongqing Changan Automobile is scheduled to open its Thai factory in the coming weeks, while Chery Automobile is currently building its local manufacturing facility. The Thai EV ecosystem also includes a fast-growing network of charging stations, the local manufacturing of chargers and significant car parts, and the assembly of battery packs and modules from imported cells.

Surge in Thai’s FDIs

In 2024, total applications for investment promotion in Thailand soared 35% in value to 1.14 trillion baht, its highest level since 2014, led by large foreign direct investment (FDI) projects in data centers, cloud services, as well as semiconductor and advanced electronics manufacturing. The automotive and parts sector ranked third in terms of the value of applications with 309 projects, worth a combined value of 102.4 billion baht.

Mr. Narit said BOI has reinforced the country’s commitment by highlighting key strategic sectors, including BCG; EVs, parts and batteries; semiconductors, advanced electronics; digital and international business centers. From 2022 to 2024, BOI approved 7,352 projects, generating economic benefits such as 400,000 jobs, domestic raw materials worth over 28 trillion baht, and exports exceeding 5.5 trillion baht.

Mr. Narit stressed key investment enablers like skilled labor, clean energy, infrastructure, industry supply chains, and investment facilitation. The forum also featured insights from senior officials from key ministries, including Digital Economy and Society, Energy, and Higher Education, Science, Research, and Innovation, highlighting the government’s unified effort to foster an investor-friendly environment.

Through these comprehensive strategies, Thailand aims to solidify its position as a leading destination for investment, innovation, and sustainable development.

17 March 2025