KUALA LUMPUR (Dec 1): China-based lithium battery production company EVE Energy Co Ltd is set to build a cylindrical battery production base in Malaysia to support electric two-wheelers and power tools manufacturing enterprises in the country and across Southeast Asia.

In a statement on Nov 24, Malaysian Investment Development Authority (MIDA) said the base will be built by EVE Energy Malaysia Sdn Bhd with a projected investment of US$422.3 million (RM1.86 billion).

MIDA said the project will be constructed in phases with a construction period of no more than three years.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said the transition to electric vehicles (EVs) will be one of the most significant shifts in Malaysia's automotive sector in generations.

He said the full-fledged cylindrical lithium battery ecosystem resonates well with the National Investment Aspirations (NIA) and National Automotive Policy 2020 (NAP2020), in stimulating and synergising the country’s EV ecosystem specifically for EV battery production.

“Equipped with highly skilled talents and proficient technology experts, Malaysia is certainly a conducive and an ideal location for the success of EVE’s investment,” he said.

MIDA said EVE is evaluating several sites to set up its manufacturing facility in Malaysia, including a few potential locations in the state of Perak.

EVE Energy Malaysia representative director Joe Chan said the establishment of EVE Energy’s cylindrical battery production base in Malaysia will help to supply high quality batteries to companies in the country and Southeast Asia.