# Thailand gears up to make a significant impact in the zero-emission vehicles (ZEV) sector - Link: https://www.thailand-business-news.com/business/115602-thailand-gears-up-to-make-a-significant-impact-in-the-zero-emission-vehicles-zev-sector - Published: 2023-12-04T14:01:13+07:00 - Author: Olivier Languepin Thailand has set its sights on fostering the growth of its domestic electric vehicle( EV) industry and establishing a robust supply chain for the production of EV batteries. To achieve this, the country’s National Electric Vehicle Policy Committee has outlined an ambitious target of having zero-emission vehicles (ZEVs) account for 30% of the local automobile production by the year 2030. ## Key Takeaways * Thailand aims to have 30% of its automobile production comprise zero-emission vehicles by 2030, driving the development of its electric vehicle industry. * The Thai government is providing subsidies and incentives to support the production of battery electric vehicles, attracting investments from companies such as Horizon Plus and CATL. * Thailand is also working on building a robust EV battery supply chain, including partnerships for lithium mining and conversion, as well as exploring battery recycling opportunities. Thailand aims to become a leading producer of electric vehicles (EVs) and a regional hub for future mobility. [Prime Minister Srettha Thavisin revealed this vision at the opening of Delta Electronics (Thailand) Plc.’s new factory](https://thainews.prd.go.th/nbtworld/news/view/176574/?bid=1) and research center dedicated to EVs in the Bangpu Industrial Estate (North) in Samut Prakan province. ADVERTISEMENT The country’s National Electric Vehicle Policy Committee has set a goal for 30% of local automobile production to comprise zero-emission vehicles (ZEVs) by 2030. To support this, the government is providing subsidies and incentives for EVs made in Thailand. Several projects have already been launched, including the manufacturing of battery EVs, cell-to-pack cooperation, and the development of battery materials. Thailand is also exploring the establishment of a lithium mining operation and conversion plants for lithium products. The country aims to become a comprehensive supply chain EV manufacturing hub in Southeast Asia. ZEVs are expected to account for 725,000 units of passenger vehicle production by 2030, ZEVs will also account for 30% of motorcycle output, or 675,000 units, while ZEV buses and trucks will be a higher 50% of production, or 34,000 units, according to the EV Board. > “The target is to establish a comprehensive EV supply chain that includes electric > car, electric bike, electric bus, parts, and components.The goal is to turn Thailand > into the comprehensive supply chain EV manufacturing hub in ASEAN.” > Srettha Thavisin, Thailand’s prime and finance minister ### Incentives to EV sector from 2024 to 2027 Under the EV 3.0 package (2022-2023), the Thai government provides subsidies ranging from Baht 70,000 to Baht 150,000 ($1,960 to $4,199) per vehicle for battery EVs and pickups manufactured in Thailand. However, the subsidy is applicable only to EVs costing less than Baht 2 million and meeting additional criteria. On November 1, 2023, the EV Board introduced a new incentive package called EV 3.5. As part of this package, the subsidy for electric vehicles was revised to a range of Baht 50,000 to Baht 100,000 per vehicle. Additionally, the incentives were extended and will now be available from 2024 to 2027. Also, for new EVs registered from Oct. 1, 2022, to Sept. 30, 2025, the annual road tax will be reduced by 80% for one year after the EV is registered, the EV board said. Since allowing tax breaks by the Thailand government, multiple projects have lined up in the country, directly influenced by the policy support. Chinese companies, GSC Aion New Energy Automobile and Svolt Energy Technology, have already committed large investments to EV production and battery production in Thailand. The Thai  government has been actively promoting investments in the EV industry, offering incentives and benefits to investors from around the world. > [Chinese EV manufacturers pour money into Thailand](https://www.thailand-business-news.com/business/99296-chinese-ev-manufacturers-pour-money-into-thailand) Chinese car manufacturers investing in EV manufacturing in Thailand include **BYD Auto, Great Wall Motor, SAIC Motor and NETA Auto**. Some such projects included the manufacturing of battery EVs by Horizon Plus, with an investment valued at 36.1 billion baht. Horizon Plus is a joint venture between PTT Plc and Foxconn Technology Group of Taiwan. ## Building EV battery supply chain IRPC, a subsidiary of the PTT Group, is also developing materials for use in EV batteries such as separators and lithium-ion anodes. IRPC also signed a memorandum of understanding with Pan Asia Metals, a battery metals pioneer in Southeast Asia with lithium development and processing interests primarily situated in Thailand and Vietnam. The non-binding MOU will see a joint team evaluating the development of components within the li-ion battery supply chain. Also, IRPC and PAM will develop a Cathode active materials, or CAM, plant. ### Related**Posts** ### 󠀁[Thailand’s Floods Expose Severe Vulnerabilities in Its Automotive Supply Chain](https://www.thailand-business-news.com/business/332669-floods-in-thailand-highlight-the-vulnerability-of-the-countrys-automotive-supply-chain)󠁿 ### 󠀁[Thailand Business News — Morning Briefing](https://www.thailand-business-news.com/business/332413-thailand-business-news-morning-briefing-2)󠁿 ### 󠀁[Thailand is making AI and semiconductors the focus of its next five-year development plan](https://www.thailand-business-news.com/business/332032-thailand-is-making-ai-and-semiconductors-the-focus-of-its-next-five-year-development-plan)󠁿 ### 󠀁[Unleashing Urban Productivity: How Thai Cities Can Drive High-Income Growth](https://www.thailand-business-news.com/business/330874-unleashing-urban-productivity-how-thai-cities-can-drive-high-income-growth)󠁿 Under the joint deal, a lithium mining operation could be set up to manufacture  lithium oxide concentrate in South Thailand, while in Rayong province, a lithium conversion plant could be established to produce either lithium carbonate or hydroxide chemical products. PAM is developing its Reung Kiet and Bang I Tum lithium projects in Thailand to produce lithium products with a zero-carbon footprint, with the former taking the lead in terms of development, according to the company. ## Potential for Battery Recycling According to projections from the EV Board, it is estimated that by 2030, Zero Emission Vehicles (ZEVs) will account for approximately 725,000 units of passenger vehicle production. This significant increase in ZEV production and usage will create new opportunities for battery recycling. “I think there will be more pressure on battery companies to recycle because it is part of the whole new energy and green movement,” Lock said. “The big opportunity for Southeast Asia is that if the auto companies start owning the end product and they bring it back in for recycling.” But a challenge is expected in the movement of battery waste as countries such as Thailand forbid the entry of battery waste. On June 7, 2023, Thailand ratified the Ban Amendment to the Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal, which prohibits the export of hazardous wastes from developed to developing countries. Amid the recycling potential, Thailand’s SCG International tied up with Singapore- born Total Energy Solutions to collaborate on the recycling and repurposing of end- of-life EV batteries. Source : [Thailand braces to make a big splash in EV sector | S&P Global Commodity Insights (spglobal.com)](https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/metals/110823-thailand-braces-to-make-a-big-splash-in-ev-sector)