Gigafactory Malaysia set to launch EV battery production

Malaysia is scheduled to commence small-scale production of electric vehicle batteries this month, utilizing domestically developed technology. The initiative is led by Gigafactory Malaysia Sdn Bhd, a subsidiary of the government-controlled NanoMalaysia Bhd, and aims to strengthen the nation's position within the global EV supply chain. This development marks a significant milestone for the ASEAN region as it transitions toward localized manufacturing of critical automotive components.

Gigafactory Malaysia Sdn Bhd, a wholly-owned subsidiary of NanoMalaysia Bhd, is preparing to launch a new 1,500-square-meter production facility located in the Suria Industrial Park in Sepang, Selangor. The facility will focus on manufacturing "graphite-enhanced" lithium-ion batteries, a technology developed in-house at a cost of approximately MYR 20 million (US$ 5 million). This project is overseen by the Malaysian Ministry of Science, Technology and Innovation as part of a broader strategy to localize the production of high-value EV components.

Beyond automotive applications, Gigafactory Malaysia will also supply batteries for energy storage systems (ESS). NanoMalaysia’s CEO, Rezal Khairi Ahmad, highlighted the regional significance of the launch, noting that the project is likely the first in the ASEAN region to produce batteries based on home-grown technologies rather than licensed foreign intellectual property. The company’s ecosystem also includes Electrick Sdn Bhd, a subsidiary dedicated to the development and commercialization of wireless charging technology for electric vehicles.

The move to domestic production addresses the high cost of battery electric vehicles (BEVs), where battery packs can represent up to 40% of total vehicle costs. By establishing a local supply chain, Malaysia aims to capitalize on the global trend of rising BEV production volumes and falling battery prices. This initiative positions the country as a potential hub for specialized battery technology within Southeast Asia, providing a foundation for future industrial expansion in the green energy sector.