Hong Seng, EoCell to develop regional manufacturing hub for EV batteries, ESS
10 Jun 2022
Hong Seng Consolidated Bhd has signed a memorandum of understanding (MoU) with EoCell Inc (EoCell) to develop a regional manufacturing hub for electric vehicle (EV) battery and energy storage solutions (ESS).
A joint statement by both companies today said Malaysia has been identified as a suitable location to scale up the EV battery and ESS sector to serve the Southeast Asian region and eventually be supplied to EV manufacturers, assemblers and users.
Hong Seng group managing director Datuk Seri Teoh Hai Hin said the company’s main duties would include assisting to identify and propose suitable locations for the project site, consulting and liaising with the government to obtain incentives and necessary authorisations.
“The global energy storage market has a very bright outlook with a valuation of US$10.37 billion (US$1=RM4.40) in 2020 and is forecast to reach US$37.06 billion by 2027.
“This translates into a compound annual growth rate (CAGR) of 19.9 per cent between 2022 and 2027 and the batteries segment is expected to account for the largest share in the energy storage market,” he said.
Meanwhile, EoCell chief executive officer Datuk Michael Loh said the company is expected to provide licenses and manufacturing technology for EV batteries, relevant industry and technology knowledge and expertise in battery production line design and installation.
“We believe Hong Seng is poised to become one of Southeast Asia’s leading battery producers and are excited to partner with them to develop their first-generation best-in-class battery.
“It also synergise with Malaysia’s clean energy initiatives,” he added.
The MoU is a non-binding statement of the parties’ current intentions and over the next 90 days, subject to the negotiation of a mutually acceptable definitive agreement, the parties intended to enter into a joint venture agreement and set up a new joint venture company.
EoCell, a Silicon Valley-based company, is a research and technology company specialising in the design and development of high-energy nano-silicon anode materials and non-flammable electron technologies for advanced silicon and solid-state batteries.