Hong Seng remains keen on EV battery manufacturing project
13 Apr 2023
Hong Seng Consolidated Bhd has mutually terminated its shares sale agreement (SSA) with CSH Alliance Bhd (CSH) for the proposed acquisition of Alliance EV Sdn Bhd (AEV).
Despite the termination, Hong Seng remained keen on the electrification revolution by choosing to focus on its electric vehicle (EV) batteries manufacturing project (Project Volt) in collaboration with EoCell Inc (USA).
Hong Seng had on Feb 13 announced its intention to acquire AEV for the purposes of acquiring the 55 acres Tanjung Malim Land held by AEV as well as AEV’s EV business which may complement its Project Volt initiative.
The acquisition is subjected to conditions precedent of the SSA which included amongst others a feasibility study to be carried out by Hong Seng to assess the suitability of the Tanjung Malim Land for the purpose of Project Volt.
Hong Seng said the key findings of the land feasibility study revealed that the Tanjung Malim Land was strategically located within proximity and region of a mature industrial estate, adjacent to Proton City and conveniently accessible to major infrastructure roads provides a major advantage to the land development appropriate for industrial activities and/or assembly plant-based manufacturing industries,
“The Tanjung Malim Land is very strategically located; however, the existing conditions of the land terrain inflicted some restrictions for Hong Seng which impedes its intention to carry out both Project Volt and Project EV in its ideal size and our future expansion development plans,” Hong Seng executive director Lestin Chin said
“The group envisions the development of a regional manufacturing hub in Malaysia, to manufacture batteries for EV and progress to power storage solutions which will eventually be supplied to EV manufacturers, assemblers, users in the Southeast Asian region,” he added.
Chin said Hong Seng would ensure that its plans are implemented cautiously in compliance with the stringent standards and requirements for batteries manufacturing and its related industries even if it will take a longer period of time to determine a suitable land and location.
Riding on the positive global outlook of the global EV battery market, which is projected to reach US$134.6bil by 2027, the group remained committed to make Project Volt a success with much-needed support from the government.
“Hong Seng aims to be one of the best EV battery manufacturers given EoCell’s proprietary technology which achieved disruptive breakthroughs for EV batteries in Silicon-based anode and non-flammable electrolyte.”
Source: The Star