Thai oil and gas conglomerate PTT, has started making lithium-ion batteries, as it works to create a supply chain for its EV brand Neta and to capitalize on the growing green car market according to a report by Nikkei Asia.
PTT Chief Executive Auttapol Rerkpiboon said the plant, owned by joint venture NV Gotion and located in Rayong province, southeast of Bangkok, has set up a production line to make lithium-ion batteries with a capacity of 2 gigawatt-hours per year.
"Capacity is expected to rise to 8 GW-hours over the next few years to meet rising demand," Auttapol said.
NV Gotion is 51% owned by PTT subsidiary Nuovo Plus and 49% owned by Chinese EV battery maker Gotion Hitech. The two companies formed the venture in December 2022 and committed to beginning commercial operation this year.
The batteries will supply Horizon Plus, an EV joint venture owned 60% by PTT and 40% by Taiwanese chipmaker Foxconn. Horizon Plus makes Neta EVs under a licensing deal with Chinese EV manufacturer Hozon Auto.
The factory's first-phase capacity of 2 GW-hours is equivalent to 50,000 battery packs, in line with demand and the business strategy of Horizon Plus, which is due to start making EVs next year.
Horizon Plus' initial production capacity is expected to be 50,000 vehicles per year, rising to 150,000 in 2030.