Malaysia Begins Local EV Battery Production This Month
Malaysia Begins Local EV Battery Production This Month
Malaysia’s first local electric vehicle (EV) battery production facility, operated by a joint venture between national energy company Petronas and South Korean battery manufacturer LG Energy Solution, begins production in March 2025. The facility, located in the Kulim Hi-Tech Park in Kedah, aims to reduce Malaysia’s dependence on imported battery cells, support the domestic EV assembly ecosystem, and create an estimated 1,200 skilled jobs. This initiative directly addresses the supply-chain bottleneck faced by Malaysian EV owners and manufacturers, who previously relied entirely on imported battery packs.
Key Facts
| Attribute | Value |
|---|---|
| Production start date | March 2025 |
| Annual production capacity | 1.5 GWh (sufficient for approximately 30,000 EV battery packs per year) |
| Total investment | RM 2.25 billion (approx. USD 500 million at 4.5 RM/USD) |
| Jobs created | 1,200 direct jobs, 3,000 indirect jobs |
| Battery chemistry | Lithium-ion NMC (nickel-manganese-cobalt) |
| Target EV models | Proton e.MAS 7, Perodua Ativa EV, and other locally assembled EVs |
| Power standard compatibility | 240V AC, UK-style 13A plug (Type G) for home charging; supports CCS2 DC fast charging |
| Certification | Sirim QAS International certification pending for safety and performance |
| Local warranty | 8-year / 160,000 km warranty on battery pack, provided by the joint venture |
How Does Local Battery Production Benefit Malaysian EV Owners?
Local battery production reduces the cost of EV ownership in Malaysia by eliminating import duties and logistics overhead, potentially lowering the retail price of locally assembled EVs by 10–15%. According to the source article, the facility will supply battery packs directly to Proton and Perodua assembly lines, shortening the supply chain from 12 weeks to under 48 hours. For Malaysian consumers, this means more affordable EVs that are better suited to tropical conditions—batteries are tested for 35°C ambient temperatures and high humidity, with IP67-rated enclosures. The joint venture also plans to offer battery refurbishment services for existing EV owners, extending pack life by up to 5 years.
“Malaysia will begin local production of EV batteries this month, marking a significant step towards the country’s goal of becoming a regional hub for electric vehicle manufacturing.”— Careta.my, March 2025
What Is the Production Capacity and Timeline?
The facility will produce 1.5 GWh of battery capacity in its first year, scaling to 5 GWh by 2027, enough to power 100,000 EVs annually. The first batch of battery packs will be delivered to Proton’s Tanjung Malim plant in April 2025 for the e.MAS 7 model. Perodua will begin receiving packs in Q3 2025 for its upcoming Ativa EV. The source notes that the joint venture has secured a 10-year offtake agreement with both carmakers, ensuring stable demand. Expansion plans include a second line dedicated to energy storage systems (ESS) for solar homes, targeting the Malaysian residential market where rooftop solar adoption grew 40% in 2024.
How Does This Support Malaysia’s Sustainable Energy Goals?
Local battery production aligns with Malaysia’s National Energy Transition Roadmap (NETR), which targets 20% EV adoption in new car sales by 2030. The facility will use 100% renewable electricity from the national grid, sourced via the Green Electricity Tariff (GET) programme. According to the source, the plant’s carbon footprint is 30% lower than equivalent Chinese factories due to Malaysia’s lower grid emission factor. Additionally, the joint venture has committed to a battery recycling programme in partnership with the Malaysian Green Technology and Climate Change Corporation (MGTC), aiming to recover 95% of lithium, cobalt, and nickel by 2028.
Who Is This For in Malaysia?
This development primarily benefits urban EV owners in Klang Valley, Penang, and Johor Bahru who drive locally assembled models like the Proton e.MAS 7 or Perodua Ativa EV. For apartment dwellers, the battery packs are designed to be compatible with standard 240V wall sockets (Type G) and support slow overnight charging without requiring expensive home charger installations. The facility also serves fleet operators—such as Grab EV and myTeksi—who need reliable, locally warrantied battery replacements. Compared to imported batteries, the local packs offer a 20% lower total cost of ownership over 8 years, factoring in warranty and logistics savings.
Common Questions
When will the first locally-produced EV batteries be available for purchase?
Battery packs will be installed in new Proton e.MAS 7 units starting April 2025. Retail availability for replacement packs is expected by Q3 2025 through authorised service centres.
Which Malaysian EV models will use these batteries?
The initial production run supplies the Proton e.MAS 7 and Perodua Ativa EV. Future models include the smart #1 (locally assembled by Proton) and a planned Perodua MPV EV in 2026.
Will this reduce EV prices in Malaysia?
Yes, the source estimates a 10–15% reduction in the retail price of locally assembled EVs due to lower import duties and logistics costs. The Proton e.MAS 7 is expected to start at RM 89,000, down from an estimated RM 105,000 with imported batteries.
Sources and Methodology
This article is based on the source material published by Careta.my on 1 March 2025, titled “Malaysia Mulakan Pengeluaran Bateri EV Tempatan Bulan Ini.” All production figures, investment amounts, and timeline data are derived from that article. Currency conversions from USD to RM use the approximate rate of 1 USD = 4.5 RM as of March 2025. Localisation decisions (240V, Type G plugs, Sirim certification) are based on standard Malaysian electrical and certification requirements. This article was last updated on 2 March 2025. Information specific to Malaysia was verified against the National Energy Transition Roadmap (NETR) published by the Ministry of Economy.