China Lithium Battery Manufacturers Surge Into Singapore

With an area of only 735 square kilometers and a population of 6 million, Singapore is rapidly becoming a leading investment frontier and trade hub in Southeast Asia for Chinese battery industry chain enterprises.

Battery China has noticed thatMany orders in the battery sector have started to be sent from or received by this tiny country.In January this year, Singyes New Materials' wholly-owned subsidiary, Singapore Innovate, received a large separator order from EVE Energy. The two parties jointly signed a global strategic cooperation framework agreement. According to the agreement,EVE Energy will purchase no less than 2 billion square meters of battery separators from Singapore INNOV in the five-year period from 2025 to 2030.

In July this year,CATL signed a battery supply order with Singaporean renewable energy developer Vanda RE.Vanda RE will procure a total of 2.2 GWh of battery energy storage systems from CATL for its integrated solar and storage project in the Riau Islands, Indonesia. It is understood that Vanda RE is a joint venture established by Singapore's Gurīn Energy and Gentari, a subsidiary of Malaysia's national oil company.

The project to procure the battery energy storage system is located in the Riau Islands, Indonesia.Plans to simultaneously construct a 2GW photovoltaic power station and a 4.4GWh energy storage system.Upon completion, it will become one of the largest integrated solar and storage projects in Southeast Asia. In the future, the project will also leverage the Indonesia-Singapore "Green Economy Corridor" to export electricity to Singapore, with an estimated annual delivery of about 300 MWh. The project is expected to be completed by 2027.

As of now, includingEVE Energy, Tinci Materials, Hunan Yuneng, Senior Material, Tianli Lithium Energy, Shangtai Technology, Jinyang Co., Ltd., and many other companies in the Chinese battery industry chain.They have already established or announced the establishment of investment companies in Singapore, targeting the Southeast Asian new energy market.

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Chinese manufacturers are making arrangements one after another.

EVE Energy is one of the early Chinese battery manufacturers to set its sights on Singapore.In December 2023, EVE Energy Singapore Company was officially inaugurated in Singapore.This marks a new stage in its global expansion. EVE Energy stated that as a significant global lithium battery company, the establishment of its Singapore subsidiary will effectively enhance its responsiveness to the Southeast Asian market demands and its customer service capabilities.

Since the beginning of this year, Chinese companies have significantly accelerated their expansion into Singapore. In late July, Hunan Yuneng announced that the company plans to establish a new investment company in Singapore. This investment company will set up a project company in Malaysia, which will invest in the construction of a project to produce 90,000 tons of lithium battery cathode materials annually. Public information indicates that the total investment for this project is approximately 560 million Malaysian Ringgit, equivalent to about 950 million RMB.

In early July, diaphragm manufacturer Xingyuan Material submitted a prospectus to the Hong Kong Stock Exchange, intending to launch an IPO on the Main Board in Hong Kong.Xingyuan Material disclosed that the company plans to invest a total of approximately HKD 210 million to establish an operation and R&D center in Singapore.The project will start implementation in early 2026 and be completed in the first half of 2028.

Earlier, in April of this year, Jinyang Co., Ltd. announced that the company plans to invest in the construction of a precision structural component project for lithium batteries in Malaysia, with a total investment not exceeding 90 million USD. The project will be implemented by a project company established in Malaysia through a wholly-owned subsidiary in Singapore.

Actually, Chinese companies had already started increasing their investments in Singapore last year. In June last year, Shangtai Technology announced plans to establish a wholly-owned subsidiary in Singapore to invest in the Shangtai project in Malaysia and proceed with its construction in Malaysia.Annual production of 50,000 tons of lithium-ion battery anode materials project.

"With the surge in global demand for electric vehicles and renewable energy storage, the market demand for lithium batteries as a core component is rapidly expanding," said Suntech Technology. The company is seeking to establish an anode material production base overseas, exploring an international development strategy to better serve international customers, be closer to the end market, and respond to customer demands.

In addition, last March, Tianli Lithium Energy also announced plans to invest in the establishment of a subsidiary in Singapore, through which it will...Explore international cooperation channels for the development of lithium resources, as well as international trade and technology cooperation models.To achieve low-cost procurement, further enrich the sources of raw materials, and improve the company's operational efficiency.

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Overseas Investment Strategic Pivot

Located at the southern tip of the Malay Peninsula in Southeast Asia, guarding the Strait of Malacca, Singapore isGlobal renowned free port and international financial and trade center.The transportation and business investment environment are extremely convenient. Xingyuan Material stated that the establishment of the Singapore Center will serve as Xingyuan Material's international trade hub and regional base, coordinating its sales, customer service, supply chain management, and R&D cooperation in the Southeast Asian region.

In recent years, Southeast Asian countries such as Singapore, Malaysia, Vietnam, and Indonesia have successively announced ambitious energy transition goals, vigorously promoting renewable energy generation and the adoption of new energy vehicles, thereby driving the rapid development of local energy storage and new energy vehicle-related industries.

According to international consulting agencies, the electric vehicle market in Southeast Asian countries is expected to experience significant growth in the coming years. It is anticipated that by 2035, the Southeast Asian marketThe total sales of electric vehicles will grow to 80 billion to 100 billion dollars.

"Using Singapore as a strategic fulcrum to expand and establish production bases in surrounding countries, Chinese manufacturers can better serve the new energy industry customers in Southeast Asia," industry analysts pointed out. This can also, to a certain extent, reduce the risk of international trade friction, avoid or reduce related tariff barriers, and help achieve the expansion of overseas production capacity, enhancing the global competitiveness of Chinese manufacturers.

It is worth noting that"Singapore" is not limited to Southeast Asia, as it can also leverage a broader global market.For example, Tianqi Materials, through its wholly-owned subsidiary Tianqi Investment Singapore, established a wholly-owned management company in Morocco. Currently, Tianqi Materials has signed an investment agreement with the Kingdom of Morocco, planning to build an electrolyte integrated base in Morocco with an annual production capacity of 150,000 tons of electrolyte products and their key raw materials.