KUALA LUMPUR, May 12 (Xinhua) -- China's battery cell manufacturer EVE Energy Co. Ltd. inked a memorandum of understanding (MoU) with Pemaju Kelang Lama Sdn. Bhd on Friday to establish a state-of-the-art manufacturing facility in Malaysia.

 

The plant will be built in Kedah state and represents an investment of up to 422.3 million U.S. dollars, and will be focused on the production of cylindrical lithium-ion batteries for power tools and electric two-wheelers, the Malaysian Investment Development Authority (MIDA) and EVE said in a joint statement.

 

The signing of the MoU signifies the advancement of EVE's Malaysian project, which effectively meets the company's needs to further expand the production capacity of cylindrical batteries to support manufacturers of electric two-wheelers and power tools, primarily in Malaysia and southeast Asia.

 

"This will further promote the company's overseas businesses and global market share of the electric two-wheelers and power tools markets and enhance EVE's comprehensive competitiveness, while accelerating the expansion of its overseas businesses and promoting the development of Malaysia," the statement said.

 

International Trade and Industry Minister Tengku Zafrul Aziz delivered a keynote address at the ceremony, saying the MoU represents Malaysia's unwavering commitment to embrace sustainable mobility and is a tremendous milestone in the journey toward a prosperous and eco-conscious future.

 

"As we seek greener alternatives, electric vehicles (EVs) emerge as a crucial solution in curbing emissions and transforming the road transportation subsector," he said.

 

"As the world strives for a more sustainable future to combat climate change, Malaysia is ready to join the movement and promote the growth of the EV industry," he added.

 

The minister said the global EV industry provides significant room for growth, particularly in southeast Asia which has potential both as a manufacturing hub and market for EVs, adding that the regional EV market is estimated to be worth nearly 500 million U.S. dollars in 2021, and is forecast to grow to 2.7 billion dollars by 2027 with a compounded annual growth rate of almost 33 percent for the period 2022-2027.

 

The significant investment is expected to generate about 600 new high-quality and high-skilled job opportunities for Malaysians, he added.

 

EVE Chairman Liu Jincheng said in his speech that EVE places great importance to investing in Malaysia and firmly believes that this is a promising and potential market.

 

"We hope to deepen cooperation with Malaysia and partners in the future, and to make greater contributions to the energy revolution and the Earth. During the plant construction and management of operations, we will increasingly promote digital transformation and improve energy efficiency to achieve production development while protecting the environment," he said.

 

EVE was established in 2001 and listed in 2009. After 22 years of rapid development, the company has become a multinational company focusing on lithium battery powering solutions.