June 23, 2022: Hong Seng Consolidated and EoCell unveiled proposals on June 14 to develop a regional battery manufacturing hub in Malaysia to initially supply electric vehicles and then energy storage systems.
The companies have signed a memorandum of understanding that paves the way to select a site for the facility and work with Malaysia’s government to “obtain incentives and necessary authorizations”.
Silicon Valley-based next-generation lithium batteries firm EoCell is set to licence the use of its products and manufacturing technology for the project with Hong Seng, a Malaysian conglomerate.
Hong Seng managing director Dato Teoh Hai Hin said: “The global energy storage market has a bright outlook, with a valuation of $10.37 billion in 2020 and forecast to reach $37.06 billion by 2027.
“This translates into a compound annual growth rate of 19.9% between 2022 and 2027, and the batteries segment is expected to account for the largest share in the energy storage market.”
EoCell holds a number of patents in battery technology in the US and is in a collaboration arrangement with Norwegian cells development company Morrow Batteries.
Michael Loh, EoCell’s CEO, said: “We believe Hong Seng is poised to become one of Southeast Asia’s leading battery producers with a focus on sustainable production facilities powered with clean green energy.
“The Southeast Asian electrification movement is underway and Hong Seng has a great strategy to fulfil this upcoming demand.”