15-6-2023 (MANILA) Yadea Group Holdings, one of the leading global manufacturers of electric two-wheeled vehicles, is planning a substantial investment of approximately $1 billion in a battery factory located in the Philippines, according to Tereso Panga, the director-general of the Philippine Economic Zone Authority (PEZA). The investment reflects Yadea’s interest in expanding its manufacturing operations in the Southeast Asian region, joining other electric vehicle (EV) manufacturers eyeing the Philippines as a potential site for their production facilities.
Yadea, renowned for its extensive production capabilities, currently operates six production hubs in China and one in Vietnam, with an annual capacity exceeding 12 million vehicles. However, the company has yet to respond to requests for comments regarding its latest investment plans.
The Philippines, historically considered a laggard in attracting foreign direct investment, has recently made efforts to entice EV manufacturers and export-oriented industries by offering tax incentives and streamlining permit processing. Despite these initiatives, the country faces tough competition from regional rivals such as Thailand and Indonesia, which have also been actively courting EV manufacturers.
In addition to its favorable investment environment, the Philippines is highlighting its abundant reserves of key raw materials like nickel, copper, and cobalt, which play a crucial role in the production of EVs. This resource advantage further positions the country as an attractive destination for battery manufacturing.
Yadea has expressed its intent to submit an application to PEZA for the establishment of a factory in Batangas, a province located south of the capital city, Manila. Initially, the focus of the factory will be to meet domestic demand for motorcycle batteries, with the potential for future exports once Yadea achieves economies of scale, as stated by Panga.
Furthermore, Panga revealed that American and British EV companies are also actively exploring opportunities for battery manufacturing in the Philippines, indicating the growing interest and potential of the country as a preferred destination for the EV industry.
PEZA has set an ambitious target of achieving a 10% increase in investment approvals for this year, aiming to surpass the 2022 figure of 140.7 billion pesos ($2.51 billion).
