Thailand’s national oil company PTT inks USD 2 bil deal to make 50k EVs per year

Three months after signing an MoU with Chinese consumer electronics contract manufacturer Foxconn, Thailand’s state-owned oil company PTT Public Company Limited (PTT) has now concluded the agreement to build electric vehicles (EVs) with Foxconn. PTT says the deal is worth between USD 1 billion to 2 billion of investments, spread out over 5 to 6 years.

PTT will establish a joint venture company and build a new plant with China’s Hon Hai Precision Industry Co., Ltd., better known as Foxconn, maker of Apple’s iPhone and many other gadgets.

Also read: PTT, Thailand’s equivalent to Petronas, will be building EVs with Foxconn

The Taiwan-based Foxconn has developed an open-source MIH Open EV Platform, which also includes software for EVs. Foxconns says MIH is to EVs what Android is to smartphones, it is open source and can be used by any manufacturer.

Foxconn has also established an EV-manufacturing subsidiary called Foxtron Vehicle Technologies Co., Ltd.

By partnering with PTT, Foxconn will extend its contract manufacturing services beyond consumer electronics to EVs. Together with PTT, the MIH platform will be pitched to companies looking for a fast-tracked entry into electric vehicles.

PTT will contribute its knowledge of the Thailand market, distribution network, and customer reach while Foxconn will contribute its expertise in manufacturing.

The plant, which PTT says will most likely be built in Thailand’s Eastern Economic Corridor (EEC) area, “will produce entire EVs with Foxconn's advanced technology covering a complete hardware and software platform that will significantly reduce the design development duration and the cost of EV manufacturing while increasing EV market competitiveness.”

PTT adds that the plant will take about 2 to 3 years to build, and when completed, will produce 50,000 electric vehicles per year in the first phase, before extending to 150,000 cars per year.

Also read: iPhone manufacturer Foxconn confirmed to build EV plant in Thailand in 2022

Both companies did not say these projections are based on orders from which company but Foxconn has since signed MoUs with Chinese bus manufacturer San-Ti Group's North-Star International Company, as well as the French-Italian-American group Stellantis (Chrysler, Jeep, Fiat, and Groupe PSA – Peugeot and Citroen - which also owns Opel) to build smart cockpits, and EV-specialist Fisker.

Foxconn’s longtime client Apple is also said to be looking for partners to build its Apple-branded electric vehicle.

Foxconn’s Chairman and CEO Young Liu said, “Our belief in innovation has always been a core value at Hon Hai and it is evident that PTT shares the same DNA as us, truly making them our ideal commercial partners. The ASEAN EV market is primed for exponential growth and together with PTT, we are confident that we would be able to create infinite possibilities for Thailand's new energy vehicle industry. We look forward to this next phase of our partnership with PTT and believe this joint venture will propel us further in the realization of Thailand 4.0.”

The virtual signing ceremony was presided by Supattanapong Punmeechaow, the Deputy Prime Minister and Minister of Energy of Thailand.

PTT’’s President and CEO also said that PTT’s subsidiary ARUN PLUS Co., Ltd. will develop the complete EV value chain by leveraging the energy business of PTT and affiliates.