Thailand BOI authorises $1bn Foxconn-PTT venture for electric vehicles

The Thailand Board of Investment (BOI) has approved a 36.1bn baht ($1bn) joint venture between Taiwan’s Foxconn and Thailand’s PTT PCL, to make battery electric vehicles (BEVs).

The Horizon Plus Co project is one of several investment applications worth a total of 209.5bn baht ($6.2bn) in manufacturing and infrastructure projects.

The agency said that the funding will enhance benefits for investment in battery production, building on Bangkok’s policy to become Southeast Asia’s EV manufacturing hub.

A set of incentives was also approved by the board to promote investments in smart industrial estates and smart systems, including upgrades of existing industrial estates.

“The roll out over the last three years of the measures to boost investment in EVs is already showing clear results and by improving the incentives for battery production, an essential element of the industry’s transition, we hope to further strengthen the supply chain,” said Duangjai Asawachintachit, secretary general of the BOI.

She added: “Both existing and new projects using advanced technology in the production of EV batteries, from battery cells to battery modules, and in the production of high energy density batteries, will under the revised benefits enjoy a 90% reduction of import duty on raw and essential materials for five years in cases where the output is sold domestically.”

To apply for the promotion of investment in smart industrial estates as well as an incentive package for upgrading existing general industrial estates, according to the BOI, projects must provide intelligent system services to their customers in five key areas: Smart Facilities, Smart IT, Smart Energy, Smart Economy, and at least one of three other intelligent system services, such as, Smart Good Corporate Governance, Smart Living, and Smart Workforce.

So far, a total of 16 projects by 10 different companies have been granted promotion benefits for investments in the manufacture of EV batteries, while another three projects have been promoted for investment in high energy density batteries.