CEO Morning Brief

Hong Seng Forms Partnership to Develop Regional Manufacturing Hub for EV Batteries

Publish date: Fri, 10 Jun 2022, 08:55 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 10): Hong Seng Consolidated Bhd plans to establish a regional manufacturing centre in Malaysia to produce electric vehicle (EV) batteries and develop energy storage solutions that will eventually be supplied to EV manufacturers and assemblers in the Southeast Asian region.

In a statement, the healthcare supply chain management specialist said it signed a memorandum of understanding (MoU) on Friday (June 10) with EoCell Inc, which specialises in the design and development of high-energy nano-silicon anode materials and non-flammable electron technologies for advanced silicon and solid-state batteries.

EoCell, which holds a number of patents in battery technology in the US, is currently in a collaborative agreement with Morrow Batteries AS in Norway and is in discussions with a number of Tier 1 original equipment manufacturers in the EV industry and other global battery manufacturers.

Hong Seng's main tasks will include identifying and proposing suitable sites for the project, suggesting appropriate consultants to conduct the necessary studies, and liaising with the Malaysian government to obtain incentives and the necessary authorisations.

Meanwhile, EoCell is expected to provide battery and manufacturing technology licences for EV batteries, relevant industry and technology knowledge related to the implementation of the project, and expertise in battery production line design and installation.

"As the world enters into the electrification revolution era, the group has determined that the MoU is expected to provide a timely opportunity to venture into the EV battery and ESS sector," said Hong Seng group managing director Datuk Seri Teoh Hai Hin.

Hong Seng shares fell two sen or 1.06% to close at RM1.87 on Friday, valuing the group at RM4.78 billion.

Source: TheEdge - 10 Jun 2022

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