Hong Seng Consolidated signs MoU with US-based EoCell to set up Malaysian EV battery production plant – paultan.org
Hong Seng Consolidated (HSC) and US-based EoCell have signed a memorandum of understanding (MoU) to develop a regional manufacturing hub in Malaysia, which will produce batteries for electric vehicles (EVs) and energy storage solutions.
Based in California, EoCell is a research and technology company that is focused on the design and development of high-energy nano-silicon anode materials and non-flammable electron technologies for next-generation silicon and solid-state battery technology.
“EoCell engineers have been key contributors to design and manufacturing of PHEV and EV batteries for prestigious brands such as BMW, VW, Audi, Porsche, and Daimler. They are truly pioneers in the electrification movement, and we look forward to working with them to design and develop world-class EV batteries to be produced in our factory,” said HSC managing director Datuk Seri Teoh Hai Hin.
“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 energy storage solutions sector,” he continued. Teoh also noted that the global energy storage market is on an uptrend, with a valuation of USD10.37 billion (RM45.8 billion) in 2020 and forecasted to reach USD37.06 billion (RM163.7 billion) in 2027.
As reported by The Star, under the MoU, HSC will identify and propose suitable locations for the manufacturing hub, propose suitable consultants to undertake the necessary studies and liaising with the government to obtain incentives and necessary authorisations.
Meanwhile, EoCell will provide licences of battery and manufacturing technology for EV batteries, relevant industry and technology knowledge in relation to the implementation of the project as well as expertise in battery production line design and installation. Over the next 90 days, subject to the negotiation of a mutually acceptable definitive agreement, both parties intend to enter an agreement to establish a new joint venture company.
“We believe Hong Seng is poised to become one of Southeast Asia’s leading battery producers with a focus on sustainable production facilities powered with clean green energy,” commented EoCell CEO Datuk Michael Loh.
“We are excited to partner with them to develop their first-generation best-in-class battery for the EV market and look forward to collaborating on additional projects with them in the future. The Southeast Asian electrification movement is underway, and Hong Seng has a great strategy to fulfill this upcoming demand,” he added.
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