Post by : Jyoti Gupta

Photo:Reuters

Chinese battery maker Eve Energy has announced plans to build its second manufacturing facility in Malaysia, marking a major step in its global expansion strategy. The new plant, to be located in Kulim, Kedah, will involve an investment of 8.65 billion yuan (approximately USD 1.2 billion) and is expected to be completed within two and a half years.

In a recent corporate filing, the company said the upcoming factory will focus on producing batteries for energy storage systems. However, it did not disclose the planned production capacity. Funding for the project will come from a mix of share offerings and institutional loans, as part of the company’s broader financing efforts.

“The project will support the company’s international business growth and meet rising global demand for energy storage,” the company stated. It also emphasized that the move will help reduce the risks linked to growing international trade tensions.

The proposed project is still subject to approval from regulatory authorities in both China and Malaysia.

This announcement comes shortly after Eve Energy’s board approved a plan to list on the Hong Kong Stock Exchange earlier in June, with the aim of strengthening its global footprint. Specifics about the public offering are still being finalized.

Eve Energy, headquartered in Huizhou, Guangdong, is currently the fifth-largest EV battery producer in China. According to Seoul-based consultancy SNE Research, the company held a 2.7% share of the global EV battery market between January and April 2025. In 2024, Eve posted a net profit of 3.2 billion yuan, a 14.8% increase from the previous year, despite a slight dip in revenue to 48.6 billion yuan.

The new factory will be the company’s second in Kulim. The first, which began operations earlier this year, manufactures cylindrical batteries used in power tools and electric bikes.

China continues to dominate the global battery industry, with six of the world’s top 10 EV battery manufacturers based in the country. Together, they account for nearly 70% of the global supply. Industry experts say Southeast Asia is becoming a key region for Chinese battery firms seeking to expand production and reduce costs.

Most Chinese manufacturers focus on lithium-iron-phosphate (LFP) battery technology, which is around 30% cheaper to produce than the nickel-cobalt-manganese (NCM) batteries more commonly used outside mainland China.

Eve Energy joins a growing number of Chinese smart mobility firms looking to raise funds through Hong Kong listings to fuel overseas growth. This includes major players in EV manufacturing, lidar technology, and autonomous driving systems.