In a move reminiscent of the solar industry’s response to anti-dumping duties a decade ago, Chinese battery manufacturers are increasingly setting up operations in Southeast Asia. However, while solar companies relocated to bypass trade barriers like U.S. tariffs, the motivations for battery manufacturers are more multifaceted, driven by intense domestic competition, rising demand in ASEAN markets, and the region’s strategic advantages.

Why Southeast Asia?

Southeast Asia offers a compelling mix of resources, cost efficiencies, and market opportunities that align with the needs of Chinese battery manufacturers. Key advantages include:

• Rich Mining Resources: Indonesia alone holds 22% of global nickel reserves, a critical component for battery production.
• Cost Efficiency: Labor costs in Southeast Asia are approximately 30-40% lower than in China’s main production hubs, reducing operational expenses.
• Geographical Proximity: The region’s closeness to China facilitates seamless supply chain integration and efficient logistics networks.
• Growing Local Demand: ASEAN’s expanding population and booming markets for electric vehicles (EVs) and consumer electronics create a robust demand for batteries.

As noted in CBEA’s 2025 industry analysis, “Chinese enterprises’ advantages in technology, products, and costs complement Southeast Asia’s resources, market, and policy advantages,” underscoring the symbiotic relationship fueling this regional shift.

Major Players and Projects

Several leading Chinese battery manufacturers are already establishing or expanding their presence in Southeast Asia, alongside some international players:

• CATL: The global battery giant has committed to a $6 billion full-chain project in Indonesia, encompassing mining, processing, material production, and recycling, with a 6.9GWh battery factory at its core.
• EVE Energy: EVE’s Malaysia facility is producing cylindrical battery cells, with an additional $1.2 billion investment to expand capacity targeting energy storage systems (ESS) for grid-scale applications.
• SVOLT Energy: In Thailand, SVOLT’s joint venture with Banpu Next celebrated the production of its 10,000th EV battery pack in June 2025.
• REPT Battero: Planning an 8GWh facility in Indonesia for power and ESS cells.
• Gotion High-tech: Operating a 5GWh facility in Vietnam, with ambitions to scale up to 20GWh across Southeast Asia in the long term.
• Sunwoda: Investing CNY2 billion in a Vietnam factory focused on consumer lithium-ion batteries.
• Shuangdeng: Planning a lithium-ion battery factory in the region.
• CLOU Electronics: Developing a 3GWh ESS factory in Indonesia.
• COSMX: Constructing a Malaysia facility, set to begin production by the end of 2025.
• Highstar: Committing CNY750 million to a 2.5GWh facility in Malaysia.
• Highpower: Launched a fully-owned Vietnam subsidiary in early 2025, focusing on lithium-ion and Ni-MH batteries.

International players are also joining the trend. U.S.-based Fluence has established a 35GWh ESS manufacturing base in northern Vietnam, with its Thailand facility already operational.

A Different Path from Solar

While the solar industry’s migration to Southeast Asia was largely a reaction to trade barriers, the battery sector’s move is driven by a combination of market dynamics and strategic foresight. Overcompetition in China’s domestic market has pushed companies to seek new growth opportunities abroad, while ASEAN’s rising demand for EVs and consumer electronics offers a promising market. Additionally, the region’s abundant resources and cost advantages make it an ideal hub for scaling production.

This wave of investment signals a deeper integration of Chinese battery manufacturers into Southeast Asia’s economic and industrial landscape. As more companies announce plans or break ground on new facilities, the region is poised to become a global hub for battery production, echoing—but not replicating—the solar industry’s earlier pivot.