KUALA LUMPUR: Hong Seng Consolidated Bhd (HSC) has inked a memorandum of understanding (MoU) with US-based EcoCell Inc to develop a regional manufacturing hub in Malaysia for electric vehicle (EV) batteries and energy storage solutions (ESS).
According to the MoU signed today, the parties have identified Malaysia as a suitable location to scale up the EV battery and ESS sectors to serve the Southeast Asian region.
Under the MoU, HSC's main duties will include identifying and proposing suitable locations for the project's site, proposing suitable consultants to undertake the necessary studies, and liaising with the government to obtain incentives and necessary authorisations.
EoCell is expected to provide licenses of battery and manufacturing technology for EV batteries, relevant industry and technology knowledge concerning the implementation of the project, and expertise in battery production line design and installation.
HSC group managing director Datuk Seri Teoh Hai Hin said that as the world enters the electrification revolution era, the MoU provides a timely opportunity to venture into the EV battery and ESS sector.
"The global energy storage market has a very bright outlook, with a valuation of US$10.37 billion in 2020 and forecasted to reach US$37.06 billion by 2027.
"This translates into a compound annual growth rate (CAGR) of 19.9 per cent between 2022 and 2027, and the battery segment is expected to account for the largest share of the energy storage market," he said in a statement.
EcoCell chief executive officer Datuk Michael Loh said HSC is poised to become one of the region's leading battery producers, focusing on sustainable production facilities powered by clean green energy.
"The Southeast Asian electrification movement is underway, and HSC has a great strategy to fulfill this upcoming demand.
"We are excited to enter the Southeast Asian market and participate in HSC's and Malaysia's clean energy initiatives," he said.
Based in Silicon Valley, California, EcoCell is a research and technology company that specialises in the design and development of high-energy nano-silicon anode materials and non-flammable electron technologies for advanced silicon and solid-state batteries.