Eve Energy will set up a joint venture in Thailand under which it will build a battery production base with a capacity of at least 6 GWh.
Chinese lithium battery maker Eve Energy will build a power battery production base in Thailand, after announcing plans to build a plant in Hungary last month.
Eve Energy signed a memorandum of understanding with Thai company Energy Absolute Public Company Limited on July 27, and the two will form a joint venture in Thailand, according to a stock exchange announcement by the Shenzhen-listed company today.
The two will use the joint venture as the implementation body to build a battery production base in Thailand with a capacity of at least 6 GWh, the announcement said.
Energy Absolute is engaged in renewable energy businesses, including biodiesel making, renewable power development, electric vehicle development and operation, and lithium primary battery manufacturing, according to the announcement.
Energy Absolute will hold 51 percent of the joint venture, with Eve Energy holding the remaining 49 percent, according to the announcement.
Although Energy Absolute holds a majority stake, the net profit of the joint venture will be shared between it and Eve Energy on a 50:50 basis.
The memorandum of understanding is helpful in facilitating the company's overseas business advancement to support the needs of customers in Thailand and Southeast Asia, Eve Energy said.
Eve Energy is one of the world's largest power battery makers, with 5.1 GWh installed in the January-May period, ranking 9th globally with a 2.2 percent share, according to South Korean market researcher SNE Research.
In China, Eve Energy's June installations were 1.48 GWh, placing it fourth with a 4.51 percent share, according to China Automotive Battery Innovation Alliance (CABIA).
On June 9, Eve Energy said its board of directors agreed that its subsidiary Eve Power Hungary Kft would invest up to RMB 9.97 billion ($1.4 billion) to build a large cylindrical battery project for passenger cars in Hungary.
The project is located in Debrecen, Hungary, and has a four-year construction period, according to an announcement last month.
Earlier today, Eve Energy's local counterpart Sunwoda announced plans to build a power battery factory in Hungary with an investment of up to RMB 1.96 billion.
($1 = RMB 7.1464)