Hong Seng Consolidated Bhd managing director Datuk Seri Teoh Hai Hin
KUALA LUMPUR: Hong Seng Consolidated Bhd
has has entered into a memorandum of understanding (MoU) with EoCell Inc to develop a regional manufacturing hub in Malaysia, to manufacture batteries for electric vehicles (EV) and progress to energy storage solutions (ESS).
EoCell, based in Silicon Valley, California, is a research and technology company specialising in the design and development of high-energy nano-silicon anode materials and non-flammable electron technologies for advanced silicon and solid-state batteries.
Managing director Datuk Seri Teoh Hai Hin said EoCell is a next-generation battery technology company with a world-class team of battery experts.
“EoCell engineers have been key contributors to design and manufacturing of PHEV and EV batteries for prestigious brands such as BMW, VW, Audi, Porsche, and Daimler. They are truly pioneers in the electrification movement, and we look forward to working with them to design and develop world-class EV batteries to be produced in our factory.
“As the world enters into the electrification revolution era, the group has determined that the MoU is expected to provide a timely opportunity to venture into the EV battery and ESS sector,” he said.
Teoh noted that the global energy storage market has a very bright outlook, with a valuation of US$10.37bil in 2020 and forecasted to reach US$37.06bil by 2027.
According to the MoU, the parties have identified Malaysia as a suitable location to scale up the EV battery and ESS sector to serve the Southeast Asian region.
The MoU contemplates that Hong Seng’s main duties will include assisting to identify and propose suitable locations for the project’s site, proposing suitable consultants to undertake the necessary studies and liaising with the government to obtain incentives and necessary authorisations.
Meanwhile, EoCell is expected to provide licenses of battery and manufacturing technology for EV batteries, relevant industry and technology knowledge in relation to the implementation of the project, and expertise in battery production line design and installation.
The MoU is a non-binding statement of the parties’ current intentions. Over the next 90 days, subject to the negotiation of a mutually acceptable definitive agreement, the parties intend to enter into a joint venture agreement and set up a new joint venture company.
EoCell chief executive officer Datuk Michael Loh said” “We believe Hong Seng is poised to become one of Southeast Asia’s leading battery producers with a focus on sustainable production facilities powered with clean green energy.”
“We are excited to partner with them to develop their first-generation best-in-class battery for the EV market and look forward to collaborating on additional projects with them in the future. The Southeast Asian electrification movement is underway, and Hong Seng has a great strategy to fulfill this upcoming demand,” he added.
