EV Board Approves Measures on EV Battery Production Promotion in Thailand to Push Thailand to Being Center for Support Electric Vehicle Industrial Sector

Prime Minister and Finance Minister chaired the 1/2024 National Electric Vehicle Policy Board (EV Board) Meeting with the Industrial Minister, Higher Education, Science, Research and Innovation Minister, Permanent Secretary for Finance and Board of Investment (BOI) Secretary-General and related parties joining in.

 

 

 

 

 

 

 

The Meeting approved the improvement of the measures to support the use of large commercial electric vehicles, both E-Buses and E-Trucks to enhance business sector in reducing carbon emissions, help Thailand attain carbon neutrality including creating a domestic commercial electric vehicle production base. Such measures will allow companies or juristic partnerships to be able to deduct expenses in calculating corporate income tax for purchasing E-Buses and E-Trucks for use without specifying a high price ceiling. In the case of a domestically produced and assembled vehicle purchase, double times expenses can be deducted and in the case of importing ready-made vehicles from abroad, 1.5 times expenses can be deducted. These measures will be effective until the end of 2025. In addition, Ministry of Finance, by the Revenue Department, was assigned by the Meeting to make a consideration to set the practical guidelines and proceed with further actions accordingly. The issuance of these measures this time to encourage the use of E-Buses and E-Trucks is an extension of the EV3 and EV3.5 measures by focusing mainly on the category groups of sedans, motorcycles and pickup trucks. Moreover, it is expected that such measures will help accelerate the conversions of at least 10,000 large commercial vehicles to electric vehicles which will eventually help reduce pollution emissions in the transportation sector and reiterate the country standing position of being the region’s EV Center for all types of vehicles.

 

 

 

 

 

 

The Meeting simultaneously approved the measures to promote investment in the production of cell-level batteries for electric vehicles and Energy Storage Systems (ESS) to attract cell-level battery manufacturers which is an upstream production using advanced technology in the investment in Thailand. In this respect, investors can apply for the investment privileges and financial support from the Country Competitiveness Subsidy Fund under the BOI with the basic conditions for investors as follows: (1) They must be leading battery manufacturers whose batteries have been used by electric vehicle manufacturers, (2) Must have a plan for producing battery cells for electric vehicles by being able to produce battery cells for Energy Storage Systems (ESS), as well, (3) Must produce the battery cells with a specific energy value of not less than 150 Wh/Kg, and (4) A minimum number of charging life cycles must not be lesser than 1,000 rounds. In this connection, the deadline for submitting the investment project proposals is within 2027. While on the matter of the domestic used battery management, it must be efficient, meet the safety standard and greatly beneficial to the economy. For such reason, the Meeting therefore assigned the Electric Vehicle and Part Manufacturing Industry Promotion Subcommittee to conduct a study on the guidelines for comprehensive management of used batteries to define further appropriate measures. The Prime Minister also reiterated how importance it was in providing supports to the electric vehicle industry in order to make the country become the ASEAN EV Center that must drive all types of EV vehicles and to encourage Thai people to turn up to use electric vehicles to help reduce PM 2.5 and pollution emissions in the transportation sector to be even more.

 

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