The new plant entails an initial investment of US$422 million (RM1.924 billion), the group said in a joint statement with the Malaysian Investment Development Authority (Mida) today.

The new facility will specialise in producing cylindrical lithium-ion batteries for the manufacturing of power tools and electric two-wheelers in Malaysia and across Southeast Asia.

EVE Energy Malaysia Sdn Bhd director Joe Chen has indicated that the project will be executed in multiple phases, and the entire construction duration will not extend beyond 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.

“Relying on EVE’s domestic advantages and operational experience, we will build a cylindrical battery production base in Malaysia to support the manufacturing of electric two-wheelers and power tools in Malaysia,” he said.

Meanwhile, MIDA deputy CEO (investment development) Lim Bee Vian said the project aligns perfectly with the nation’s 12th Malaysia Plan (12MP) and the National Automotive Policy 2020 (NAP), which aspire to achieve 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.

“Today’s celebration marks a crucial milestone that not only benefits EVE but also paves the way for more companies to invest in Malaysia in the electric vehicle (EV) industry and its ecosystems,” she added.

On Dec 1, 2022, EVE had announced that it will invest RM1.9 billion to set up a cylindrical battery production base in Malaysia.

The company’s products are widely used in the internet of things (IoT) application, and its lithium-ion batteries are supplied to many globally renowned brands.