Southeast Asia's largest coal mining company Banpu plans to enter Thailand's growing electric vehicle (EV) industry, focusing on lithium-ion battery manufacturing。

Last October, its subsidiary Banpu Next acquired a 40% stake in battery maker Svolt.。As traditional energy giants commit to sustainable growth, Banpu's integration into the electric vehicle supply chain highlights a major shift in the energy landscape.。

By entering the battery production field, Banpu not only responds to the global electric vehicle trend, but also sets a new benchmark for energy groups in the region, combining its expertise in resource extraction with cutting-edge technologies in renewable energy storage。

Banpu's entry into the electric vehicle industry is not only an expansion of its product portfolio, but also a recognition of the huge potential of the Thai electric vehicle market。Banpu CEO Somruedee Chaimongkol said that the company expects to start producing batteries in early 2024, and the batteries will be supplied to major Chinese electric vehicle manufacturers that produce in Thailand。

Banpu plans to produce lithium-ion batteries for passenger electric vehicles, electric buses and trucks, which will be used for domestic consumption and export.。Its manufacturing plant is located in Thailand's Chon buri (Chon buri), the Sriracha (Sriracha) area, about 85 kilometers from Bangkok, and its annual production capacity is enough to provide batteries for 60,000 electric vehicles.。

"Our main customers are major electric vehicle producers that have invested in Thailand over the past few years, including Great Wall Motor (GWM) and Neta.。"Somruedee said。

In 2022, Banpu's net profit was $1.2 billion, up 282% year-over-year, mainly due to soaring coal prices.。Of these, the coal and natural gas businesses together account for approximately 90% of the Company's revenue。In line with the global trend to reduce carbon emissions, the company is moving into less carbon-intensive industries such as battery production.。

Earlier this year, Banpu also invested $70 million to take its stake in Singapore-based lithium-ion battery maker Durapower from 47..68% increased to 65.10%。The investment is part of Banpu's strategy to boost its energy storage business and boost revenue from its green business, especially electric vehicle batteries, as demand for its business may grow significantly from next year.。

Last year, the Thai government began providing subsidies of up to 150,000 baht per electric car to reduce car prices and stimulate demand.。Not only that, Thailand is also offering import duty-free concessions to foreign electric vehicle manufacturers on the condition that they start producing electric vehicles in Thailand by 2024.。

In addition to producing electric vehicle batteries, Banpu also plans to invest in high-value strategic minerals, with the goal of mining nickel ore in Indonesia in the next few years.。The company said BanpuNot only to build batteries for electric vehicles, but also to build supply chains for electric vehicles and renewable energy as a strategic move for Banpu's transition from the energy industry to cleaner energy。

However, mining investment requires huge sums of money, and Banpu will have to be very cautious until the Indonesian government introduces clearer investment policies and subsidies before investing.。

Somruedee said: "Banpu is expected to find new partners in the next two years and finalize the investment strategy.。"