Malaysian EV hub deal signed

Geely Holding and Malaysian automotive manufacturing and distribution company DRB-HICOM have signed a heads of agreement (HOA) to develop a new energy vehicle (NEV) industry hub in Malaysia.

Signed at the Malaysia-China Business Forum in Beijing, the HOA aims to accelerate development of the Automotive High-Tech Valley (AHTV) as Malaysia’s next-generation vehicle hub in Tanjong Malim covering the automotive and mobility solutions value chain.

The HOA’s focus is the development of an integrated automotive city that will give rise to a hub for a NEV industry within Malaysia.

AHTV will initially occupy about 404.6 hectares and will be expanded to cater for future needs.

During the next 10 years, AHTV is expected to attract about NZ$11 billion (RM32 billion) worth of investments, including by Malaysian national car company Proton jointly owned by Geely Holding and DRB-HICOM.

AHTV will also receive direct and indirect benefits from Proton’s plan to fully relocate its manufacturing facilities to Tanjong Malim by 2026.

Proton now produces five models in AHTV and another two models in Shah Alam, Selangor.

AHTV will also include a research-based university for new talents and development in areas of new and emerging technologies for the industry and the automotive sector in general.

It will also house a research and development centre that will provide carmakers with a tropical setting to test their vehicles.

Geely has a wide experience with electrification and green vehicles with Geely Auto and new intelligent luxury EV brand Zeekr launching several new energy models.

The company has also invested extensively in battery and NEV technologies while planning to launch more than 30 new energy models across its brands by 2025.