Gotion Hi-Tech, a leading Chinese battery firm, signed an agreement on December 15 with Nuovo Plus, an energy solutions company under the Petroleum Authority of Thailand, involving the establishment of a joint venture called NV Gotion Co., Ltd. The new entity will focus on the design, development, verification and manufacturing of battery modules, packs, and management systems. The products will be suitable for various automotive and energy storage applications.
According to the plan, NV Gotion will build a lithium-ion battery pack production line in the eastern economic corridor of Thailand. It is estimated that by the fourth quarter of 2023, the first phase will be put into production to provide high-quality battery products to the market. The joint venture will also actively explore the new energy market in ASEAN and devote itself to building a battery export base in the region.
According to an announcement by Gotion Hi-Tech, the initial registered capital of the joint venture company is 300 million Thai baht ($8.59 million), of which Gotion Singapore PTE. LTD. holds 49% equity and Nuovo holds the rest. Total investment is estimated to be 600 million baht, and both investors jointly contribute according to the corresponding equity ratio.
Regarding this cooperation, Gotion Hi-Tech stated that it is an important part of the company’s globalization strategy and that it is of great significance for the company to explore the Southeast Asian market, improve market awareness and build an international brand image. At the same time, it is helpful in promoting the export of the company’s lithium-ion power battery products to ASEAN and laying a solid foundation for the company’s international market development and sustainable development.
In the fourth quarter of this year, this is the third overseas expansion plan carried out by Gotion Hi-Tech. In October, Gotion invested $2.36 billion to build a battery module factory in Michigan, United States. In November, it jointly invested with VinES of Vietnam in a battery factory, which will become the first lithium iron phosphate battery factory in the country.
On the other hand, the Petroleum Authority of Thailand (PTT) is the largest state-controlled energy and petrochemical company in Thailand and a Fortune 500 company, and Nuovo Plus is a subsidiary dedicated to energy solutions. Dr. Buranin Rattanasombat, Chief New Business and Infrastructure Officer, PTT Public Company Limited and Chairman of the Board of Nuovo Plus Company Limited, said in his speech that, “NV Gotion will be capable of providing industrial sectors with one-stop services as well as international standard batteries not only in Thailand but across ASEAN by combining the knowledge of Nuovo Plus and Gotion in the fields of R&D, competitive production potential, technical service from experts.”