PTT Thailand & Gotion Ink Joint Venture Deal For EV Battery Production

Spawning from the PTT Foxconn deal which was sealed in 2022, PTT the Thai equivalent of our Petronas has just inked a deal with Gotion, a Volkswagen-backed Chinese battery manufacturer. The deal would give PTT the rights to produce and export battery modules and packs in Thailand.

Based on the deal, Gotion’s Singapore arm will take lead in setting up the joint venture with initial registered capital of 300 million baht (RM38-million) where 49% shares will be held by Gotion while 51% by PTT who will be incharge of the production of both electric vehicles and energy storage.

This venture would take shape in Thailand's Eastern Economic Corridor (EEC) zone by the fourth quarter or 2023 with the establishment of its own battery pack production line.

According to Li Zhen, Gotion-Hightech President, this venture would aid in Gotion’s plan for global expansion. Gotion, which has the Volkswagen Group as its single largest investor, plans to have at least one-third of its production outside of China by 2025.

This trend is evident as we see the rapid boom in EV acceptance and production resulting in an increased demand in EV batteries and battery technology improvement. Chinese battery manufacturers who are pretty much leading this space are venturing out of China to Europe and Southeast Asia to meet these growing demands. Leading the way in this venture based expansion is the CATL group.