According to a top Philippine trade and investment official, the Philippines, Vietnam, and Indonesia are competing to host an electric vehicle (EV) assembly plant for BYD, the world’s second-largest EV manufacturer.
The Chinese automaker is in an “advanced stage of discussions” with the Philippines, Trade Undersecretary Ceferino Rodolfo said in an interview on Wednesday.
During a visit late last year, BYD representatives scoured the Philippines for potential factory sites. According to Dr. Rodolfo, who also chairs the Philippine Board of Investments (BOI), the company may decide on a location during the second quarter.
BYD yet to announce the plant location
According to Ms. Lanie Dormiendo, director of the BOI’s International Investments Promotion Service, BYD is still deciding whether the new factory will be a full-fledged production plant or a final assembly facility with car parts shipped from overseas.
BYD, based in Shenzhen, has no “relevant information to disclose,” according to a spokesman.
According to a person familiar with the case who asked not to be recognized, talks between BYD and Indonesia about a possible investment in an EV factory in the country are ongoing because the discussions are private.
According to the source, the Indonesian government provides a slew of tax breaks, incentives, and access to battery raw materials to entice the carmaker to shop there rather than in a neighboring country like Thailand.
BYD did not respond immediately to an inquiry about Indonesia.
Indonesia and the Philippines are ideal locations
Southeast Asian countries compete for EV investment as global automakers shift away from the combustion engine, a switch China has dominated.
Great Wall Motor has already established a production line in Thailand, and both BYD and rival Tesla have expressed interest in nickel-rich Indonesia.
With an economy that expanded at its fastest rate in nearly a half-century last year, the Philippines is courting top-tier EV and battery manufacturers like BYD with tax breaks and other subsidies under a law passed last year, as rising oil prices help accelerate the global shift away from gasoline-powered vehicles.
Indonesia and the Philippines, which account for nearly half of the world’s nickel reserves, are ideal locations for EV and battery manufacturers. Dr. Rodolfo stated that BYD, which uses lithium iron phosphate in its EV batteries, is looking at the Philippines as a potential growth market.
We are not a low-cost destination, but we are a destination for companies that are looking for solutions for their net-zero carbon commitments
Dr. Rodolfo stated on Philippines as potential growth market
Renewable energy to be 30% in 2040
Philippines has recently lost out on investment opportunities to its neighbors in recent past, as its power rates are among the highest in the region.
However, according to Dr. Rodolfo, it is positioning itself as a hub for sustainable production facilities.
By 2040, the country hopes to have renewable energy account for half of its electricity mix, up from around 30% today.
Contemporary Amperex Technology Company Limited, or CATL, is also in talks with Philippine government officials about investing in a plant to process nickel for EV batteries, said Dr. Rodolfo, 52, who has worked for the government’s trade and investment agencies for a decade.
CATL did not respond immediately to a request for comment.
Dr. Rodolfo was part of President Ferdinand Marcos Jr.’s entourage in the United States and China, two of nine countries visited by the Philippine leader since taking office nearly eight months ago.
His office said those trips generated approximately US$63 billion (S$84.6 billion) in investment commitments.
