According to Yicai Global, Pret Composites, a leading Chinese composite materials supplier that has ventured into energy storage battery production, has announced a USD103 million investment to build a new lithium battery factory in Johor, Malaysia. This expansion aligns with the company’s strategy to increase its global market share, navigate international trade barriers, and enhance revenue from its new energy business segment.
Key Highlights of the Investment
Pret Composites has an annual production capacity of 2.5 GWh of cylindrical lithium batteries, primarily supplying major clients such as Stanley Black & Decker and Robert Bosch. Strategically, this investment aims to increase global market share, expand production for energy storage solutions, and strengthen the company’s presence in the new energy industry. Additionally, establishing the factory in Malaysia helps mitigate trade barriers that affect exports, ensuring smoother market access and operational stability.
How This Impacts the Energy Storage Industry
Pret’s subsidiary, Highstar Battery Manufacturing, will be responsible for building and managing the state-of-the-art production facility. Highstar already produces energy storage battery solutions and supplies major power tool and smart home appliance manufacturers. With this expansion, the company aims to cater to the growing demand for high-performance lithium cells, driven by the electrification of various industries, including power tools, smart home appliances and energy storage systems.
Current Battery Production Capabilities
As of June 2024, Highstar Battery had an annual production capacity of 2.83 GWh for cylindrical ternary lithium batteries, 1.19 GWh for square lithium iron phosphate (LFP) batteries, and a combined 1.3 GWh for sodium-ion and lithium-ion batteries. The establishment of the new factory in Malaysia will significantly enhance the company’s overall battery production capabilities, further strengthening Pret Composites’ competitiveness in the global lithium battery market.
Future Outlook
With increasing demand for sustainable energy storage solutions, Pret Composites’ investment in Malaysia positions the company as a key global player in the lithium battery industry. As more industries transition to electrification, demand for high-efficiency energy storage solutions will continue to rise. The new factory will enable Pret to better serve its global clientele, secure supply chains, and remain competitive in an evolving energy market.
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