Thailand Enhances EV Support Program for Battery Innovation

May 2024

Thailand’s EV Board has endorsed strategies to bolster the adoption of electric buses and trucks, with the aim of positioning the nation as a key hub for electric vehicles (EVs) in the region while striving to attain carbon neutrality targets.

Under these measures, companies are now entitled to deduct expenses related to the purchase of e-buses and e-trucks from their corporate income tax. This initiative serves as an incentive for transitioning from conventional fossil fuel vehicles to EVs.

Furthermore, the EV Board has greenlit initiatives to encourage investment in the production of battery cells and energy storage systems, with the intention of attracting prominent battery manufacturers to invest in Thailand. These efforts are geared towards solidifying Thailand’s status as a regional electric vehicle hub and supporting its carbon neutrality objectives.

These measures encompass subsidies for EV production and tax deductions for companies procuring electric buses and trucks. Additionally, the government has sanctioned strategies to draw investment in battery cell production and energy storage systems, with financial backing provided through the Competitiveness Enhancement Fund. This move aims to entice leading battery manufacturers to invest in Thailand, thereby accelerating the shift from fossil fuel-powered vehicles to electric ones. Consequently, there has been notable growth in Thailand’s EV market.

The EV Board’s endorsed measures also include initiatives to foster investment in battery cell production and energy storage systems by extending financial support through the Competitiveness Enhancement Fund. Eligible companies may further benefit from the support scheme under Thailand’s Competitiveness Enhancement Act. The overarching objective is to attract more prominent battery manufacturers equipped with advanced technology to invest in Thailand.

Under these measures, investors can apply for benefits and financial support. The initial criteria for investors to apply are as follows:

  • The investor must be a leading battery manufacturer used by EV manufacturers;
  • The investor must have a plan to produce battery cells for EVs and ESS;
  • The battery cells must have an energy density of at least 150 Wh/kg; and
  • The battery must have a minimum life cycle of 1,000 cycles.

Project investment proposals must be submitted by the end of 2027.

(Source: Thailand Business News)

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