SET-listed Thai energy firms are diversifying into the power storage sector to tap into rising demand, according to industry officials.
The move follows the government's policy to lend full support to electric vehicles (EVs) and renewable energy sectors, they said.
Tevin Vongvanich, chief executive and president of PTT Plc, the national oil and gas conglomerate, said the company is conducting a feasibility study for lithium-ion battery production in Thailand.
He said PTT plans to expand into lithium-ion batteries through its subsidiary, SET-listed Global Power Synergy Plc (GPSC), which has signed a licence and service agreement with M24, a lithium-ion battery startup in the United States.
The signing ceremony was done in Cambridge, Massachusetts on May 2. According to the agreement, GPSC will be licensed to bring in technology for the commercial production of new batteries. M24 has a pilot project plant in the US, but its technology has help cut production costs significantly.
Mr Tevin said PTT's primary goal is to produce batteries for storage in the renewable energy sector.
This is in line with energy policymakers' plans to raise the proportion of renewable energy to 30% of total power generation by 2036, from 12%.
After achieving the first goal, the PTT plans to produce batteries for EVs as global car assemblies are developing technologies to produce more EVs, and PTT is also preparing for the EV expansion by increasing the number of EV charging units at PTT petrol stations.
He said plans for the battery production factory are expected to be concluded in 2018.
Another SET-listed renewable company, Energy Absolute Plc, is planning to set up a joint venture with Chinese electrical equipment producer Shenzen Growatt New Energy Technology Co and Taiwan's largest battery producer Amita Technologies Inc to conduct feasibility studies for battery production in Thailand.
Energy Absolute's chief executive Somphote Ahunai said the project needs an initial capital expenditure of 3 billion baht for the first phase, which is expected to produce batteries with total capacity of one gigawatt.
"Our battery products are suitable for renewable power," Mr Somphote said.
The factory could be located in the Eastern Economic Corridor.
Bangchak Corporation Plc has also diversified into upstream lithium batteries, with a US$32 million (1.11 billion baht) investment budget.
President and chief executive Chaiwat Kovavisarach said Bangchak is preparing to open a lithium mine in Argentina's Cauchari-Olaroz project in Juluy, with a capacity of 25,000 tonnes a year in the first phase and 50,000 tonnes in the second.
Bangchak entered lithium mining recently by acquiring a 16% ownership stake in Lithium Americas Corporation, a firm listed on the Toronto Stock Exchange, which has a 50% stake in Minera Exar, a joint-venture company that has been granted a production licence.
The production plan will be finalised within end of this year.