KUALA LUMPUR: Tan Chong Motor Holdings Bhd
(TCMH) is exploring the localisation of electric vehicle (EV) battery packs and other components in Malaysia through a collaboration with China-based Saike REPT Power Battery System Co Ltd.
In a filing with Bursa Malaysia, TCMH said its indirect wholly-owned subsidiary TQ Manufacturing Sdn Bhd (TQM) entered into a memorandum of understanding (MoU) with Saike to assess the feasibility of the proposed collaboration.
Under the MoU, the parties will conduct feasibility studies and jointly evaluate the viability of localising EV battery packs and other identified components in Malaysia, including those for TQ Wuling vehicles.
The collaboration will also explore opportunities to supply the components to overseas markets, as well as the responsible handling, recycling and second-life utilisation of used EV battery packs.
TQM is involved in the assembly and sale of motor vehicles and is the assembler and distributor of TQ Wuling electric vehicles in Malaysia following its strategic collaboration with SAIC-GM-Wuling (SGMW).
Saike, meanwhile, is the battery-pack supplier designated by SGMW for TQ Wuling electric vehicles. TCMH said the proposed collaboration is aimed at supporting localisation requirements, strengthening Malaysia’s EV supply chain and assessing opportunities in battery lifecycle management and exports.
The MoU will remain in force for 12 months from yesterday, unless extended by mutual agreement or terminated in accordance with its terms.
The parties may enter into a definitive agreement on mutually agreed terms, subject to the outcome of the feasibility study.
“The MoU provides a framework for TQM and Saike to assess the feasibility of localising battery packs and other identified vehicle components in Malaysia.
“The proposed collaboration is intended to support compliance with applicable localisation requirements, strengthen the local EV supply chain and evaluate opportunities relating to battery lifecycle management and potential exports,” Tan Chong said.
At 5pm yesterday, TCMH closed unchanged at 45.5 sen.
