EA undeterred by low fossil fuel prices
Full speed ahead on lithium-ion battery plant, writes Srisamorn Phoosuphanusorn
SET-listed Energy Absolute is adamant it will not delay the kick-off of the first phase of its 100-billion-baht lithium-ion battery production plant at the end of this year, despite tumbling oil prices putting the viability of electric vehicles (EV) at risk.
“Yes, there is a theory that low oil prices are not good for EV demand, but I believe the massive shift to EVs in the short term won’t be stopped,” said electricity billionaire Somphote Ahunai, founder and chief executive of Energy Absolute. He ranks 18th on Thailand’s 50 Richest list on Forbes, with an estimated net worth of US$2 billion.
Mr Somphote acknowledged that plummeting oil prices put a dent in EV sales, with battery-powered vehicles taking a hit, but contends it will not completely reverse the industry’s momentum.
The crisis has created a chance for countries to turn the trajectory of their development towards sustainability, he said. The Thai government should develop a resilient and adaptive strategy to restart businesses, reforming the economy in a way that is not centred around the volatile oil and gas sector, said Mr Somphote.
“The government must change the way it does things. Thailand will have to navigate a world that will never be the same again because of the pandemic,” he said.
Mr Somphote received a letter from Prime Minister Prayut Chan-o-cha along with other Thai billionaires requesting help with the economic ramifications of the crisis.
The government should plan a recovery based on creating a clean energy, high-value green economy that not only fights climate change but also works to resolve urban air pollution, he said.
Smart Grids, a next-generation energy grid that more efficiently produces and distributes power, has the potential to bring the country a more stable, economical and environmentally friendly electrical system, said Mr Somphote. Battery systems can integrate renewable energy into smart grids and play an important role in future energy systems.
“Even if oil prices dip by five baht per litre, what will we benefit if we die from PM2.5 dust pollution? If we do nothing, we all will die. If the government does not move forward, that will be the end for the local auto industry. What will the consequences be for the local supply chain? There will be mass unemployment and supply chains will relocate from Thailand to other countries,” he said.
Pollution in Thailand has been relatively under control because the country has a strong public health system and people often cooperate with the state, said Mr Somphote.
FACTORY OF THE FUTURE
He said EA is scheduled to start production at the 5-billion-baht first phase of the lithium-ion battery factory by the end of this year in Chachoengsao province, with an annual capacity of one gigawatt-hour (GWh) of energy storage.
The company aims to increase capacity to 50GWh in the second phase by 2022, making the plant larger than Panasonic’s 35GWh factory for US-based Tesla in the state of Nevada.
EA acquired a 77% stake in Taiwan-based Amita Technologies for 3 billion baht to take advantage of the firm’s lithium-ion technology.
EA is scheduled to start its EV assembly line at its 200-million-baht plant in Chachoengsao province by the end of this year, with capacity to assemble 10,000-15,000 units a year.
The company plans to deliver the first batch of EV orders for 4,562 Mine MPVs (multi-purpose vehicles), all equipped with EA batteries, in the first quarter of next year.
“We expect to sell 10,000 EV units next year,” Mr Somphote said.