KUALA LUMPUR: EP Manufacturing Bhd (EPMB) and California-based SAEAN Group Inc have signed a memorandum of agreement to jointly develop and manufacture electric vehicles (EVs) in the segment's four-seater five-door electric car.
Both companies aim to produce 20,000 electric cars annually for the Southeast Asian market as EPMB makes its debut in manufacturing four-wheeled EVs.
The partnership may also manufacture heavy industry EVs for the construction sector.
Under the partnership, SAEAN will offer technical and design know-how for the EVs to be jointly-developed with EPMB.
EPMB will provide support regarding resources and market information necessary for developing EVs and actively strive for mass production, supply and sales.
Both parties will also explore an expansion programme to cover export opportunities.
EPMB executive chairman Hamidon Abdullah said the company would climb up the value chain and further harness its true potential with this strategic alliance after being an automotive original equipment manufacturer parts manufacturer for years.
"We are set to be one of Malaysia's first homegrown EV carmakers once this joint venture with SAEAN is powered on.
"At this point, many EVs are still out of reach for most consumers as the entry prices are high.
"We aim that, through this collaboration, we can invoke more local sourcing to support our local assembly of the vehicle.
"Hopefully, the savings thereof can translate to cheaper entry and running costs," he said in a statement.
Given SAEAN's established expertise in EV concept development and hardware technologies, he added that the company was also confident it could accelerate the commercial roll-out in the next few years.
"At the same time, EPMB will strive to achieve technical knowledge transfer for the benefit of Malaysians in the EV landscape," said Hamidon.
Founded in 2013, SAEAN currently owns over 120 EV-related patents with its Research and Development Centre in South Korea.
Under its expansion plan, a sports EV model will begin limited production next year for the United States (US) market. The company is also en route to a listing on Nasdaq soon.
SAEAN chief executive officer John Lee said the signing marked an important milestone for the company as it finally identified a manufacturing partner to join forces in producing EV cars.
"Malaysia will be our hub to tap into the Southeast Asian market with the extended plan to further export to the US, Canada, South Korea, Japan and Europe.
"Hence, EPMB's strength and network in Malaysia will be instrumental for us to undertake this EV venture.
"Also, given its ESG ambitions, we do not doubt that EPMB will be our best partner in the region. We look forward to moving our partnership to the next level soon," said Lee.