SIB Inks MOU With ZZ Tech To Establish Local Battery Component Production

Sapura Industrial Berhad (SIB) headquarters in Bangi, Selangor. The local firm just inked an MOU wtih China's ZZ Tech, and  could soon establish a battery component-making.

Auto parts manufacturing firm Sapura Industrial Berhad (SIB), via its subsidiary SIB Ventures Sdn Bhd, have signed a Memorandum of Understanding (MOU) with  Zhejiang Zhongze Precision Technology Co. Ltd. (ZZ Tech), reports Bernama.

The agreement sees both parties eyeing up to establish a manufacturing plant in Malaysia to produce battery components. For those who aren’t familiar, SIB Ventures is the electrified automotive parts arm of SIB that’s based in Bangi, Selangor.

ZZ Tech, on the other hand, is involved in the precision manufacture of structural components for new energy batteries, and its products are reportedly used in both new energy vehicles (xEVs) and lithium battery energy storage fields – it includes blade- and cylindrical-format batteries.

Moreover, Carz.com.my has understood that ZZ Tech is also a supplier of Contemporary Amperex Technology Co. Ltd, or better known global EV battery-making giant CATL. This is the same firm appointed by local automaker Perodua to support its first EV model that launches this year.

Perodua e:MO2 concept previews an upcoming production version that's slated to launch later this year with a battery-leasing scheme.

Previewed as the e:MO II concept during KLIMS 2024, P2 confirmed prior that the still unnamed production version of said concept will use China-made batteries. However, the automaker is also bound by duty to establish a viable manufacturing ecosystem locally for said new EV model.

Obviously, P2’s goal here is the effective localisation of at least one of the three critical and high-value elements of any EV – high-voltage battery, inverter, or the e-motor itself. This reported MOU between local firm SIB and China’s ZZ Tech could possibly be the start to which.

The production version of the Perodua e:MO II concept pictured, which remains unnamed still, is slated to debut towards the end of this year.

Although neither SIB nor ZZ Tech mentioned Perodua in their reported announcement, it’s obvious that the collaboration both companies seek to forge seems to point in said automaker’s direction. However, despite the MOU singing mentioned, nothing is firm yet.

Typical of formal business agreement as such, the MOU is not legally binding and will run for up to 180 days to allow both firms to assess and study the feasibility of the proposed collaboration. Only at the end of which is where both companies must decide to proceed or not.

“The proposed collaboration will be subject to both parties agreeing on the business plan, followed by negotiations and the execution of a definitive agreement, in which further terms, rights, and obligations of each party will be stipulated,” SIB reportedly emphasised.