EV Battery Manufacturing for Southeast Asia

This research offers an analysis of the growth prospects for manufacturers of the EV battery manufacturing sector in Southeast Asia. It includes a regional landscape assessment and forecast, evaluating the factors driving market growth and their influence on landscape evolution over the short, medium, and long term. Additionally, the report provides an overview of the manufacturing landscape and manufacturing facilities, as well as SWOT analysis, for each country covered.

A Nascent But Steadily Growing EV Battery Manufacturing Industry in Southeast Asia

Southeast Asia’s EV battery industry was still in its early stages in 2023 but growing steadily, driven by government incentives, foreign investments, and increasing collaboration. Major Asian battery manufacturers continue to dominate the region, with development remaining uneven — countries like Thailand and Indonesia are seeing more EV battery manufacturing activity.

The strong potential in the region’s two-wheeler EV market is a promising prospect for the growth of EV batteries, with battery swapping emerging as a convenient solution to address limited charging infrastructure and range constraints. Export opportunities also exist for countries with abundant key minerals, positioning Southeast Asia as a potential supplier in the global EV battery supply chain.

EV Battery Manufacturing Market Trends

• Major EV battery manufacturers are located in Asian countries, including China, Korea, and Japan. Southeast Asia’s drive towards electric vehicles and the pursuit of foreign investments are shaping the early stages of the region’s EV battery manufacturing industry. The current production capacity is estimated at 26.6 GWh, with projections suggesting an increase to a total of 98.6 GWh by 2030.​
• ​The pace of industrial development varies across Southeast Asia. Thailand and Indonesia, being the major players in the automotive industry, experienced faster rate of development by each capitalizing on their unique strength to incentivize domestic production and drive adoption of EVs. Meanwhile, capital investments in Malaysia and Vietnam are also increasing significantly, driven by presence and commitment of key industry players in the country.​
• ​Although establishing battery manufacturing facilities requires significant capital, a few companies like Samsung SDI have initiated operations in several Southeast Asian countries, expanding their EV battery manufacturing footprint in Malaysia and Vietnam.​