KUALA LUMPUR (Sept 3): Cape EMS Bhd (KL:CEB) has signed a strategic cooperation agreement with Shanghai Sermatec Energy Technology Co Ltd to assemble and manage battery energy storage systems (BESS) in Malaysia for the Asean market.

The electronics manufacturing services (EMS) provider said in a statement Wednesday that the systems will be locally manufactured, with Sermatec transferring the full assembly of its BESS units to Cape EMS' facility in Senai, Johor.

"Cape EMS will serve as Sermatec’s regional partner to produce, test and manage BESS products tailored for the Southeast Asian market, offering a complete business solution underpinned by reliable post-deployment support," said Cape EMS.

The partnership with Sermatec — a BloombergNEF Tier 1 global energy storage manufacturer — is aimed at supporting the increasing energy infrastructure demands of large-scale solar systems and electric vehicle (EV) charging networks in Asean, the company noted.

BloombergNEF’s Tier 1 is a bankability ranking for manufacturers of energy storage systems and solar modules that is used by developers and banks to assess the financial stability and credibility of manufacturers for large-scale projects, based on their project and financing track record, among others.

Cape EMS said the systems will come with comprehensive insurance coverage and be supported by long-term operations and maintenance services for institutional and commercial clients.

Through its subsidiary, Cape Renewables Sdn Bhd, the group will also oversee the localised monitoring and management of battery management systems (BMS) and energy management systems (EMS).

"This end-to-end capability ensures seamless operations, faster technical support and improved system efficiency for projects deployed across the region," it said.

Shares in Cape EMS settled half a sen or 1.56% lower at 31.5 sen on Wednesday, valuing the group at RM312.48 million.