China’s Sunwoda invests $1.5bn in Thailand battery plants

China’s leading lithium battery producer Sunwoda has received approval from Thailand’s Board of Investment (BOI) for a THB 50 billion ($1.5 billion) investment in local battery manufacturing. The company’s subsidiary, Sunwoda Automotive Energy Technology (Thailand) Co. Ltd, will establish production facilities for electric vehicle (EV) and energy storage system (ESS) batteries, reinforcing Thailand’s role in the regional EV supply chain.

Sunwoda plans to build two factories in Chonburi, within Thailand’s Eastern Economic Corridor (EEC), with production set to begin this year. The first facility will focus on lithium-ion batteries for EVs and is progressing smoothly, according to Thai authorities. Once operational, the plant is expected to create over 1,000 jobs, spanning both manufacturing and research & development. Sunwoda also aims to integrate battery recycling into its Thailand operations in the future.

Narit Therdsteerasukdi, Secretary-General of the BOI, welcomed the investment as a “milestone in Thailand’s EV supply chain development.” He emphasized that local battery production will solidify Thailand’s position as a regional EV and hybrid vehicle manufacturing hub while enhancing its global competitiveness. The project is also expected to accelerate the adoption of ESS and solar technologies in Thailand, fostering knowledge transfer by employing thousands of local engineers and workers.

The BOI is chaired by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, who also leads the National Competitiveness Enhancement for Targeted Industries Committee of Thailand. The country is pursuing an aggressive EV strategy under its “30/30” policy, aiming for full electrification of its auto sector by 2035. To support this transition, the government has introduced subsidies and tax incentives for both EV manufacturers and consumers.

Thailand, currently the 10th largest car producer in the world and Southeast Asia’s top automotive manufacturing nation, has already attracted four major Chinese automakers—SAIC Motor, Great Wall Motor, BYD, and GAC Motor—to establish local EV production. Changan Automobile and Chery Automobile have also announced plans to build plants in the country.

Sunwoda, ranked 10th globally in combined EV and ESS battery shipments in 2024 with 22GWh, has been expanding internationally to strengthen its supply chain. In 2023, the company launched its first European factory in Hungary, with additional production facilities planned in Vietnam and Morocco. According to Sunwoda’s financial reports, overseas revenue accounted for 40.5% of its total earnings in 2024.

The company’s latest move into Thailand marks another step in its global expansion, aligning with its strategy to establish a strong foothold in key EV growth markets worldwide.