China Manufacturers Concentrate on Building Malaysia Battery Base

With the significant increase in demand from overseas markets, Chinese lithium battery manufacturers are accelerating their efforts to establish bases abroad, with Malaysia being an important strategic hub.

"In late August, EVE Energy revealed during a conference call that the production capacity of small cylindrical batteries in Malaysia has achieved mass production. Meanwhile, the second phase of its energy storage plant in Malaysia is progressing in an orderly manner and is expected to be completed by the end of this year, with mass production and delivery starting early next year. In June this year, EVE Energy announced that its wholly-owned subsidiary in Malaysia plans to use its own funds or financing to construct a new energy storage battery project, with an investment amount not exceeding 8.654 billion yuan."

It is understood that the battery production base in Malaysia is EVE Energy's first factory to achieve overseas mass production and delivery, with plans to cover a full range of products including consumer batteries, power batteries, and energy storage batteries. The project is positioned as a "multi-scenario lithium battery production base covering Asia and radiating globally."

In late August, EVE Lithium Energy announced that its wholly-owned subsidiary, Tenpower Malaysia, had signed a memorandum with Nengyuan Technology to establish a joint venture for product sales. According to the agreement, after receiving customer orders, the joint venture will purchase products from Nengyuan Technology, which will commission Tenpower Malaysia for contract manufacturing. Tenpower Malaysia will be responsible for procuring all raw materials required for the production of these products and organizing production according to Nengyuan Technology's order requirements.

In addition, at the beginning of August, the Malaysian Investment Development Authority announced that Chinese battery materials manufacturer Hunan Yuneng plans to build a lithium battery material production plant in Malaysia. The investment project is expected to be completed and put into operation within the next two years. According to Hunan Yuneng's announcement in July, the project intends to build a factory with an annual production capacity of 90,000 tons of lithium battery cathode materials.

01

Implement localized support

Due to its unique geographical location and trade advantages, Malaysia is rapidly emerging as one of the core growth hubs of the lithium battery industry in Southeast Asia. Industry insiders point out that for Chinese lithium battery manufacturers actively expanding into the global market, Malaysia is not only an important base for optimizing production costs but also a strategic hub for positioning in the Asia-Pacific market and connecting the global industrial chain.

The implementation of the Malaysia project will further promote the expansion and development of the company's overseas business. By increasing the production capacity of overseas manufacturing bases, it will meet the growing global demand for supporting products. EVE Energy stated that with the intensification of international trade frictions, this project will also help reduce losses caused by related trade risks to a certain extent, contributing to the growth of business orders, expansion of production capacity, and overall improvement of operational performance.

Regarding the joint venture with EVE Energy to establish a company in Malaysia, Veken Technology stated that the cooperation aims to enhance the company's R&D and manufacturing capabilities in the high-end product sector. It is beneficial for the rapid improvement of the capacity utilization of Malaysia's Tianpeng and will play a positive role in the continuous development of the company's lithium battery business.

"This project investment aligns with the global development trend of the new energy industry and will better serve new energy battery manufacturers in ASEAN and other regions," said Hunan Yuneng. The company also stated that the project will, to some extent, reduce the risks of international trade friction, help expand production capacity, and enhance the company's global market share.

In addition to EVE Energy, Vblue Lithium, and Hunan Yuneng, in recent years, many Chinese lithium battery industry companies—including Zhuhai Guanyu, Highstar, Enjie, Senior Material, Capchem, Kedali, and Jinyang—have also established factories in Malaysia.

According to statistics, as of now, the investment amount of the aforementioned Chinese manufacturers in Malaysia has exceeded 26 billion RMB, covering upstream and downstream sectors such as batteries, materials, and equipment. Data from the Malaysian Investment Development Authority shows that in 2024, Chinese companies will account for more than 60% of foreign investment related to batteries.

02

Rapidly growing market

As one of the important economies in Southeast Asia, Malaysia has a relatively complete automotive industry chain, currently home to 600 automotive parts manufacturers. Malaysia is currently the second-largest automobile consumer in Southeast Asia, with car sales surpassing 800,000 units for the first time in 2024, reaching 816,700 units.

Chinese automobile manufacturers are increasingly focusing on the Malaysian market. Currently, Chinese car brands such as BYD, Geely, Changan, Dongfeng, Chery, SAIC, GAC, JAC, Great Wall, Zeekr, Deepal, Neta, and XPeng have either already entered or plan to enter the Malaysian market. They are either setting up factories locally or establishing sales networks.

In August this year, BYD held a launch event for the new BYD Seal in Malaysia and announced plans to build an assembly plant locally, which is expected to start production in 2026. The BYD Seal is also the best-selling pure electric sedan in Malaysia for 2024. Last year, BYD sold 8,570 electric vehicles in Malaysia, achieving a market share of 31%. BYD has been the top seller in the Malaysian pure electric market for three consecutive years.

It is reported that Great Wall Motors achieved a substantial 331% sales increase in the Malaysian market in 2024 compared to 2023. In 2025, Great Wall Motors plans to introduce at least three new models in the Malaysian market, including the pure electric luxury MPV WEY80, as well as the Tank 500 and Haval Chulian.

In recent years, the sales of electric vehicles in Malaysia have been growing rapidly. According to data from the Malaysian Automotive Association (MAA), the total sales of pure electric and hybrid vehicles in Malaysia reached 30,573 units in the first half of 2025, a 35.6% increase compared to 22,512 units in the same period of 2024. In the first half of this year, the penetration rate of electrified vehicles in Malaysia has reached approximately 8% and is expected to reach 9.6% by the end of the year, with new models continuing to drive growth momentum.

The Malaysian government is actively promoting the development of the electric vehicle industry. According to Malaysia's National Energy Transition Roadmap, the country plans to establish 10,000 public charging facilities nationwide by 2025. According to the plan, the country aims to achieve a 15% share of electric vehicle sales by 2030, increase this proportion to 38% by 2040, and reach an 80% penetration rate of electric vehicles by 2050.

From the perspective of the supply chain, Malaysia can play an important role in the midstream industry of electric vehicles, covering the automotive and battery manufacturing processes. Malaysian Ambassador to China, Norman, stated that Malaysia has created an environment conducive to research, development, and manufacturing. This will offer attractive investment and cooperation opportunities, creating a chain reaction that will benefit the entire region.