Tuesday, March 5, 2024

Thailand sets 24 billion baht budget to subsidize domestic EV Battery Production

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BANGKOK (NNT) – The government has set aside a budget of 24 billion baht ($714 million) to subsidize domestic manufacturing of battery cells for electric vehicles (EVs).

Energy Minister Supattanapong Punmeechaow said the subsidy is one of the measures agreed upon by the National Electric Vehicle Policy Committee at its first meeting of the year. The state subsidy is expected to help manufacturers cut production costs, which in turn would make EVs more affordable in the domestic market.

Additionally, the committee will implement other measures such as a reduction in excise tax for EV battery-makers, from 8% to 1%. These incentives are expected to boost domestic production of EV battery cells, with the goal of developing a complete manufacturing base for EVs in Thailand.

However, the energy minister warned that these subsidies will be distributed on a “first-come, first-served” basis due to the limited budget.

The ministry added that owing to a number of positive factors, Thailand has drawn the attention of many leading battery manufacturers to set up their factories in the country.

Source link : Thailand sets 24 billion baht budget to subsidize domestic EV Battery Production by National News Bureau of Thailand and Headline Editor

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