Chinese battery giant Eve Energy to invest $454 million in new Malaysian factory

(Yicai) July 8 – Eve Energy, a leading Chinese battery maker, said it will invest RMB 3.3 billion (US$454 million) in building a new factory in Malaysia to meet surging demand for energy storage and consumer batteries.

Huizhou-based Eve Energy said late on July 5 that the plant is due to be built in Kulim, Kedah, within two and a half years, subject to regulatory approvals in China and Malaysia.

The company said the factory would increase its annual production of prismatic and cylindrical lithium-ion batteries and facilitate its overseas expansion, but did not disclose details such as the plant’s production capacity.

A combination of strategic factors, government support, industrial capabilities and growing demand for renewable energy and consumer electronics has made Malaysia and Southeast Asia a key region for the production and consumption of energy storage and consumer batteries. In recent years, the market has seen an influx of investment from Chinese companies.

Eve Energy is expanding its overseas production capacity. Construction began late last month on a commercial vehicle power battery plant in Mississippi. The company and partners including Daimler Trucks will invest $2.6 billion in the plant, with a Chinese company holding a 10% stake.

In a separate announcement on July 5, Eve Energy said it expects to generate up to $23 million in revenue by the end of this year from providing equipment and related services to power plants in Mississippi.

Eve Energy shipped 28.08 gigawatt-hours of motive batteries and 26.29 gigawatt-hours of energy storage batteries last year, with overseas sales accounting for 27% of its total revenue, according to its annual financial report. Citing Infolink and the Shanghai Metal Market, the company noted that it ranked third in the world in energy storage battery shipments for the second consecutive year.

Eve Energy Shares [SHE: 300014] The yuan fell 3.2% to close at 36.24 yuan ($4.98) per share in Shenzhen today, down 14% since the end of last year.

Editor: Martin Kadiev

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