Arun Plus and CATL to Jointly Establish CTP Lithium-ion Battery Plant in Thailand and Boost EV Production

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● Arun Plus (Arun Plus) and CATL (CATL) have reached a business agreement to jointly establish a Cell-To-Pack (CTP) lithium-ion battery assembly plant in Thailand, ready to continue producing automotive batteries. All types of electricity with high technology To enhance the potential of electric vehicle production in Thailand under the investment framework of over 3,600 million baht, the plant will be ready for production by 2024 with a production capacity of 6 GWh per year.

● Mr. Ekachai Yimsakul Managing Director of Arun Plus Co., Ltd. (Arun Plus) along with Mr. Ni Zheng, Executive president of overseas car business, and CEO of Japan & Korea affiliate, Contemporary Amperex Technology Co., Ltd (CATL) signed a joint contract to establish a CTP battery factory in the Eastern Special Development Zone. Chonburi Province which was held at the Shanghai International Automobile Industry Exhibition, People’s Republic of China. To reaffirm Thailand’s confidence in becoming an EV manufacturing hub of ASEAN in the future, under collaboration with CATL, the international leader in sustainable EV battery technology, among the joys of both parties.

● Mr. Ekachai Yimsakul, Managing Director of Arun Plus Co., Ltd., said, “This collaboration between Arun Plus and CATL is an important first step towards a comprehensive battery business as CATL is a company that has comprehensive battery business. Battery Value chain from raw material procurement product research and development battery production to battery recycling as well as other businesses Related And today’s collaboration will lead to an important next step in shaping the battery ecosystem of the future as well.”

● PTT Public Company Limited (PTT) is a 100% owned company of Arun Plus and is ready in terms of national infrastructure such as more than 2,200 gas stations nationwide. and automotive service centers within gas stations By collaborating with Start Up to invest in new businesses to support Mobility and Lifestyle in the future. In November 2022, Arun Plus joined forces with Honhai Precision Industry Co., Ltd or FOXCONN to establish Horizon Plus Co., Ltd. to produce EVs to support Higher demand both within the country and in the ASEAN region. It will start production in 2024 with an initial production capacity of 50,000 vehicles per year and will increase to 150,000 vehicles in 2030. The establishment of the EV plant is beneficial to the establishment of the CTP battery factory this time and In the future, Arun Plus is also exploring the possibility of cooperating with CATL to bring CATL’s battery-related technologies to use in the country, such as battery swapping technology, battery recycling technology, and EV platform technology. CATL (CATL Integrated Intelligent Chassis : CIIC) and will study ways to become a battery cell manufacturer in the future. Mr. Ekachai Serm

● The cooperation in establishing a CTP battery assembly plant is the first step of cooperation between Arun Plus and CATL. In addition to enhancing the production potential of Arun Plus Group in electric vehicles, Arun Plus will also work closely with CATL. To support Thailand’s carbon neutral policy And contribute to the sustainable growth of the country.

What is Cell-To-Pack Technology?

● Battery production technology that is widely used today is traditional battery production technology or Cell-To-Module (CTM) is a battery cell that is assembled into a module (Module Assembly) before each module is assembled into a battery pack. The traditional production of this battery would waste a lot of space for packing the battery cells. While Cell-To-Pack (CTP) battery manufacturing technology is a battery pack manufacturing technology that allows battery cells to be stored directly into the battery pack. No module assembly required. This allows for more battery cell storage space without a Case Module and thus a higher energy density of the battery.

Advantages of Cell-To-Pack Batteries

● CTP batteries can be used in all types of EVs, including personal cars. Commercial cars, buses, trucks, and can increase the number of battery packs according to the characteristics and needs of each type of EV, which 4-wheel vehicles generally use 1 battery pack per car. The need for more than 1 battery pack per vehicle

● CTP technology improves battery efficiency by 10-15% due to 15-20% more battery cell space compared to CTM technology.

● 20-25% reduction in battery production costs due to CTP technology which reduces the number of parts in the production process by 40% compared to CTM batteries which must be assembled into modules before being put into the battery pack.

● The weight of the battery is reduced due to fewer components in the battery, resulting in the EV using less energy. Can run a longer distance and CTP batteries are also safer because they have better cooling efficiency than CTM batteries.

Cooperation between Arun Plus and CATL

● After studying business development opportunities together in 2022, Arun Plus and CATL decided to sign the Signing Ceremony of Agreement on Production Line and IP License (CTP) on April 20, 2023. There are 3 phases of cooperation plans as follows:

● Short term is a cooperation to establish a CTP battery assembly plant in Thailand to deliver CTP batteries to electric vehicle companies. The plant is expected to spend approximately 3,605 million baht ($103 million) in both technology and plant construction. And plans to start production in the fourth quarter of 2024 with an initial capacity of 6 gigawatt hours per year (GWh) and can increase production capacity according to domestic demand up to 18-20 GWh per year

● The medium term is a cooperation in transferring CTP technology to battery factories in Thailand. (Localization) for battery related parts. as well as related businesses such as Battery Swapping, Battery Recycling, CATL Integrated Intelligent Chassis (CIIC), etc.

● Long-term is cooperation to establish a battery cell factory in Thailand. as well as other cooperation related in ASEAN

● At present, Arun Plus and CATL are in the process of selecting a plant site. The plant is expected to be located in the Eastern Economic Corridor (EEC) area, close to the electric vehicle industry in Thailand. The construction period is approximately 2 years.

● The factory’s target customers are electric vehicle manufacturers. and domestic electric vehicle manufacturers using CTP batteries and CATL battery cells.

● The CTP battery assembly plant marks the first step of cooperation between Arun Plus and CATL, with the two companies also planning to jointly invest in other technologies. Both electric vehicle battery switching technology (Battery Swapping) that reduces the time to charge the battery. Battery recycling technology (Battery Recycling) that brings batteries that have expired into the process to be converted into raw materials for reuse. Supporting sustainable business operations as well as electric vehicle platform technology (CATL Integrated Intelligent Chassis: CIIC) and the study of battery cell manufacturers. To aim for a fully integrated battery business in Thailand

● Being a battery producer, which is an essential part of electric vehicles, will drive the establishment of electric vehicle production bases in Thailand. Resulting in the exchange of knowledge and advanced technology that helps to enhance the skills of Thai workers to have higher potential. Promote job creation, create a career Supporting the expansion of the battery industry This is in line with the government policy to promote the electric vehicle manufacturing industry in the country to have the potential to be on par with international standards in the future. ●