Gotion, PTT Group plan battery venture in Thailand

SHANGHAI/BEIJING (Reuters) -Volkswagen-backed Chinese battery maker Gotion High Tech will partner with PTT Group in the production and export of battery modules and packs in Thailand, the Chinese company said in a Shenzhen filing on Thursday.

Gotion's Singapore unit will set up a joint venture with Thailand's PTT for the projects with initial registered capital of 300 million Thai Baht ($8.60 million), the company said.

The joint venture, which is 49% owned by Gotion and 51% by PTT, will work on batteries for both electric vehicles and energy storage, Gotion said.

It is expected to start production at a battery pack production line in the Eastern Economic Corridor of Thailand by the fourth quarter of 2023, the Chinese company said in a separate company statement.

The cooperation will help Gotion's global expansion, company chairman Li Zhen said in the statement.

Anhui, China-based Gotion, which counts Volkswagen as its largest single investor, plans to locate one-third of its production capacity outside China by 2025.

Chinese battery makers are accelerating production expansion in Europe and Southeast Asia to meet growing demand from electric vehicle makers and energy storage household clients in global markets.

However, many of them are yet to make concrete moves to build factories in the United States due to concerns of higher costs and political risks.

Reuters in October reported that Chinese battery giant CATL had slowed plans to invest in battery plants in North America over concerns that new U.S. rules on sourcing required materials would drive up costs.

($1 = 34.9000 baht)

(Reporting by Zhang Yan, Ella Cao and Meg Shen; Editing by David Goodman and Mark Porter)