China's Gotion High-tech and Thailand's Nuovo Plus to establish joint venture

A worker is busy at a battery company plant of Gotion High-tech Co., Ltd. in Hefei, east China's Anhui Province, June 19, 2020. (Xinhua/Huang Bohan)

Chinese battery cell manufacturer Gotion High-tech Co., Ltd. (002074.SZ) on Thursday signed a cooperation agreement to set up a joint venture with Nuovo Plus of Thailand's PTT Group, as a bid to explore the new energy market in the Association of Southeast Asian Nations (ASEAN), reported Shanghai Securities News.

Determined to build a battery export base in the ASEAN, the joint venture will cover business including design, development, validation and manufacturing of battery modules and battery packs, as well as battery management systems, which are applicable to a wide range of vehicles and energy storage systems.

The joint venture plans to build a lithium-ion power battery pack production line in Thailand's Eastern Economic Corridor. It is expected that the first phase of the production line will be put into operation by the fourth quarter of 2023, providing high-quality battery products to the market.

The PTT Group is a large state-controlled energy and petrochemical company in Thailand, under which Nuovo Plus is a company that provides energy solutions. The new joint venture will support the PTT Group to achieve net zero carbon emissions by 2050, contributing to Thailand's goal of achieving full electrification and net zero carbon emissions by 2065, according to the company.

The partnership marks a supportive move in the global business of Gotion High-tech as well, said Li Zhen, chairman of the company, noting that both sides are expected to take more efforts in optimizing technology, product and management of the new joint venture.