On the evening of July 22, Hunan Yuneng announced its plan to establish a new investment company in Singapore, which will then set up a project company in Malaysia to build a lithium battery cathode material project with an annual capacity of 90,000 tons. The construction period is expected to be 15 months, with a total investment of approximately 560 million Malaysian Ringgit, equivalent to around RMB 950 million.
Hunan Yuneng is a leading producer of phosphate-based cathode materials. In 2024, the company’s main product—phosphate cathode materials—achieved shipments of 710,600 tons, marking a year-on-year growth of 40.2%. It has ranked first in the industry for five consecutive years since 2020.
As the global new energy vehicle (NEV) and energy storage sectors continue to thrive, the global new energy market presents significant growth potential. Lithium iron phosphate (LFP) cathode materials, one of the key technical routes in lithium battery development, have seen rapidly growing demand in the domestic market in recent years, with overseas demand also surging.
In 2024, Hunan Yuneng established its first overseas production base in Spain, aiming to build a lithium battery cathode material project with an annual output of 50,000 tons. The project is progressing smoothly.
The company’s new move into Malaysia aligns with the global trends in the new energy sector and represents a further step in advancing its internationalization strategy.
According to Hunan Yuneng, this investment will help better serve new energy battery manufacturers in ASEAN and nearby regions, mitigate the risks associated with international trade frictions, support capacity expansion, and increase the company’s global market share and overall competitiveness.
Currently, Malaysia has become a popular destination for Chinese lithium battery supply chain enterprises. In addition to Hunan Yuneng, companies such as EVE Energy, Zhuhai CosMX, Tenpower, Highstar, Capchem, Senior, Enjie, Kedali, Suntech, and Jinyang have already launched industrial chain projects in Malaysia, with many of them already operational or expected to start production this year.
For example, EVE Energy’s cylindrical battery factory in Malaysia produced its first battery on February 16; Senior’s Malaysia plant (Phase I) officially began production on June 28.
Additionally, Zhuhai CosMX's RMB 2 billion project is scheduled to start production by the end of 2025; Tenpower’s Malaysia battery project is expected to commence operations in the first half of 2025; and Highstar’s cylindrical battery factory is projected to begin production in Q3 2025.
The reason lithium battery enterprises are flocking to Malaysia is twofold. On one hand, Malaysia is centrally located in Southeast Asia, is a key economy within ASEAN, and offers a stable trade environment, a favorable geographical position, and a well-developed industrial ecosystem—all of which provide strategic advantages for international business expansion.
On the other hand, in recent years, Malaysia and several surrounding ASEAN countries have announced ambitious energy transition goals, promoting the adoption of renewable energy and NEVs. This is driving rapid growth in the local energy storage and NEV industries. Moreover, Malaysia benefits from a strong network of free trade agreements, having signed FTAs with over 120 economies, including the United States, enabling it to maintain a relatively stable position in international relations.
With many existing projects already operational or nearing completion, the number of Chinese lithium battery enterprises establishing operations in Malaysia is expected to continue growing.
Source：https://mp.weixin.qq.com/s/skeTG5XB4vjSE4cV8VN5MA
