PTT and Foxconn sign JV for EV production in Thailand
Supattanapong Punmeechaow, deputy prime minister and minister of Energy of Thailand, presided over the virtual signing ceremony of a joint venture agreement for the development of electric vehicle (ev) production in Thailand between PTT Public Company Limited (PTT) and Hon Hai Precision Industry Co., Ltd. (Hon Hai/Foxconn) on September 14, 2021. Their partnership was announced in June. Taiwan’s Hon Hai Technology Group, better known as Foxconn, is the world’s largest electronics manufacturer.
The local automotive industry’s transition to modern electric vehicle (EV) technology will be strengthened with Foxconn’s innovation in production and development of the EV platform together with PTT Group’s local knowledge, allowing the country’s manufacturing industry and economy to grow.
Auttapol Rerkpiboon, president and chief executive officer of PTT, announced that PTT, through its subsidiary ARUN PLUS Co., Ltd., plans to develop the complete EV value chain by leveraging the energy business of PTT and its affiliates.
Following the signing, a joint venture company will be formed. Original equipment manufacturers (OEMs) in Thailand are welcome to participate in an end-to-end operation, including designing, manufacturing, assembling EVs, and producing major parts such as battery platforms, drivetrains, and motors. The five to six year investment plan will commence with the construction of a new plant, potentially located in Thailand’s so-called Eastern Economic Corridor (EEC) area and setting up a production system, supply chain management, and an engineering research and development center.
Leveraging Foxconn’s advanced technology
The plant will produce entire EVs with Foxconn’s advanced technology covering a complete hardware and software platform that will significantly reduce the design development duration and the cost of EV manufacturing, while increasing EV market competitiveness. It will take approximately two to three years to set up and start with an initial manufacturing target of 50,000 cars per year in the first phase, increasing to 150,000 cars per year in the following years.
“This joint venture will stimulate national investment as well as enhance Thai people’s skills and vocations. Following the success in the first phase, we will expand the investment further. This initiative will not only help increase business potential on the world stage, but also respond to the government policy and direction of promoting electric vehicles, which intend to accelerate the electric vehicle industry to be one of the outstanding S-Curve industries, driving Thailand to further achieve greenhouse gas reduction targets,” said Auttapol.
“Our belief in innovation has always been a core value at Hon Hai and it is evident that PTT shares the same DNA as us, truly making them our ideal commercial partners. The ASEAN EV market is primed for exponential growth and together with PTT, we are confident that we would be able to create infinite possibilities for Thailand’s new energy vehicle industry. We look forward to this next phase of our partnership with PTT and believe this joint venture will propel us further in the realization of Thailand 4.0.” said Young Liu, chairman and CEO of Hon Hai.
