Chinese EV battery maker to invest $1.2 billion in new Malaysian plant
Kyiv • UNN
Leading Chinese EV battery manufacturer Eve Energy will build its second plant in Malaysia, valued at $1.2 billion, financing the project with funds from a planned Hong Kong listing. The enterprise will produce batteries for energy storage systems, expanding the company's global presence.
Leading Chinese electric vehicle battery manufacturer Eve Energy will build a second plant in Malaysia worth $1.2 billion, financing the project with funds from a planned listing on the Hong Kong stock exchange. The plant in Kulim will produce batteries for energy storage systems and will be part of the company's strategy to expand its presence in the global market, particularly in Southeast Asia. This is reported by SCMP as conveyed by UNN.
Details
Chinese company Eve Energy, one of the largest manufacturers of batteries for electric vehicles, will build a new plant in Malaysia for US$1.2 billion. The project will be financed with funds raised from the upcoming listing on the Hong Kong stock exchange. This is Eve's second plant in Malaysia.
The new enterprise will be located in the city of Kulim, Kedah state, in the north of the country. Construction will last up to two and a half years. The plant will produce batteries for energy storage systems - this segment of the market is growing rapidly. The production capacities are not yet disclosed.
The company, whose shares are already traded in Shenzhen, plans to attract financing not only through the exchange but also through loans. Eve notes that "the project will stimulate the expansion of the company's overseas business and satisfy the growing global demand for energy storage."
The plant, according to their estimates, will help mitigate the risks arising from the escalation of international trade disputes and stimulate the growth of our business.
The decision to start construction still needs to be approved by the Chinese and Malaysian authorities. The company confirmed information about IPO preparations on June 9.
Eve plans to go public in Hong Kong to actively develop its business abroad. Details of the placement are still being worked out.
According to SNE Research, as of the first four months of 2025, Eve held 2.7% of the global EV battery market.
In 2024, its net profit was 3.2 billion yuan (14.8% more than last year), and revenue slightly decreased - by 0.4%, to 48.6 billion yuan.
Today, six of the ten largest battery manufacturers are Chinese companies. They control almost 70% of the global market, although the vast majority of products are still sold domestically.
Chinese-made batteries are in high demand worldwide due to their manufacturing cost advantage. Southeast Asia is a key market where they seek to increase capacity.
Zhang adds that Chinese manufacturers are banking on lithium iron phosphate technology. Its production is approximately 30% cheaper than that of traditional nickel-cobalt-manganese technology, which is popular outside of China.
Addition
Eve's first plant in Kulim is already operational - it produces batteries for power tools and e-bikes. The new project is expected to significantly expand the company's presence in the region.
By going public, Eve joins a number of Chinese companies seeking to attract foreign investment. These include automakers Chery and Seres, and manufacturers of components for "smart" cars, such as Hesai (lidar) and Pony.ai (autonomous driving).
For comparison: the world's largest battery manufacturer, CATL, recently raised $5.22 billion during its IPO in Hong Kong. This was the largest public offering of 2025. The company stated that it would use these funds to build new plants outside of China - foreign markets already account for a third of their revenue.