The facility will convert imported battery cells into modules that will then be integrated into high-voltage batteries.
“Local production of high-voltage batteries in Rayong is the next logical step in the continued electrification of our production network,” says Milan Nedeljković, Board Member for Production at BMW.
The plant will be in Rayong, on Thailand’s eastern coast. BMW already operates a vehicle plant in the area, where it manufactures some high voltage battery systems for locally made plug-in hybrids.
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BMW is also planning to invest in BEV production in Rayong, although a Final Investment Decision on a facility is yet to be taken.
“The BMW Group is readying yet another production facility to manufacture fully electric vehicles, with local BEV production scheduled to start in the second half of 2025,” says a press release from the firm.
BMW has existing battery facilities in China and Hungary.
Last month Thailand's National Electric Vehicle Policy Committee approved new incentives for domestic battery manufacture, as it looks to become a hub for the industry.
"The measures to promote investment in the production of battery cells, a key element of the supply chain, will help ensure the sustainability and resilience of our EV ecosystem," said Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI).
It also recently approved incentives for commercial fleets of large trucks and buses to convert to BEVs.
The government has a target for 30pc of the cars made in Thailand to be EVs by 2030.
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