Thailand to provide subsidies for EV battery cell manufacturers

Thailand to provide subsidies for EV battery cell manufacturers

The Thai government has set aside a budget of THB24 billion (USD689 million) to subsidise the domestic manufacturing of battery cells for electric vehicles (EVs).

Thai Energy Minister Supattanapong Punmeechaow said the subsidy was one of the measures agreed upon by the National Electric Vehicle Policy Committee at its first meeting of the year. The state subsidy is expected to help manufacturers reduce production costs, which could help make EVs more affordable for Thai consumers.

Additionally, the committee will implement other measures such as reducing the excise tax for EV battery makers, from 8% to 1%. These incentives are expected to boost domestic production of EV battery cells. The goal is to develop a turnkey manufacturing base for EVs in Thailand.

These subsidies will be distributed on a “first-come, first-served” basis due to the limited budget, the energy minister said.

Thailand, which is the automotive manufacturing hub in Southeast Asia, has attracted several leading battery manufacturers to establish plants in the country due to the government’s policy regarding EVs, he added.