Global Power Synergy Plc (GPSC), a power generation arm of national oil and gas conglomerate PTT, is accelerating its spending on electric vehicle (EV) battery production by making a 500-million-baht investment to acquire an 11.1% equity interest in Chinese battery manufacturer Anhui Axxiva New Energy Technology Co (AXXIVA).
The new deal paves the way for GPSC to have a stronger presence in the energy storage industry, following its earlier move to build a factory in Rayong to produce batteries used in buildings, said GPSC president and chief executive Worawat Pitayasiri.
GPSC's board approved the investment and it was reported to the Stock Exchange of Thailand yesterday after the capital increase agreement was made with the Chinese firm on Monday.
The company, now in the process of establishing a subsidiary to invest in Axxiva, expects to obtain approval from Chinese authorities soon.
It expects to complete the transaction in the first quarter of this year, he said.
The investment in this project aligns with the company's strategy on the expansion of investment in innovation and technology, said Mr Worawat.
"The company wants to generate revenue from the fast-growth industrial sector or new s-curve businesses corresponding to the fast-moving environment of energy and electricity generation sectors," he said.
Through the investment, the company will be also able to capture and expand business collaboration in many areas, including technical knowledge and experience sharing for commercial giga-scale production, co-procurement in electrode active materials and other raw materials.
This will eventually enhance competitiveness of the company's battery manufacturing business at a rapid pace, said Mr Worawat.
The business deal will add another battery production plant to GPSC's portfolio.
Axxiva specialises in manufacturing EV batteries, with production capacity of 1 gigawatt-hour per year. It is using technology from Boston-based 24M Technologies Inc in the US.
GPSC is also a licensee of 24M Technologies, the owner of energy storage system technology.
GPSC is developing a pilot semi-solid battery production plant in Rayong's Map Ta Phut at a total cost of 1.1 billion baht. Thai Takasago was awarded a construction contract and the plant is expected to begin operating in April. The facility in Rayong is designed to have a production capacity of 30 megawatt-hours. This can be expanded to 100MWh in the future.
Last year GPSC announced it aims to become a main developer of utilities to support new high-tech businesses based in the Eastern Economic Corridor.