The Thai government intends to introduce a new set of incentives to support the local production of battery cells and to expand the use of new energy-powered buses and trucks as part of its efforts to strengthen its position as a center for the electric vehicle industry.

Bloomberg News Agency quoted Narit Therdsteerasukdi, Secretary of the National Electric Vehicle Policy Committee, as saying that the government will provide financial grants to companies seeking to establish local factories to produce battery cells in Thailand.

The financial incentives will be provided on a case-by-case basis and will help support the cost of building the factory by between 30% and 50% of the cost. The committee has also approved incentives to encourage companies to modernize their bus and truck fleets to use electric buses and trucks.

Thailand has been offering new incentive packages to attract foreign investments in recent years, especially from Chinese electric vehicle manufacturing companies. Thailand is often referred to as the "Detroit of Asia" in reference to the American automotive capital, Detroit. It aims to reach a 30% share of electric vehicles in its total vehicle production by 2030.

At the same time, demand for electric vehicles in Thailand has increased after the government reduced fees and taxes on imported electric vehicles and provided cash support to buyers in return for commitments from car companies to start producing these vehicles locally, as part of new moves to enhance its status as a regional automotive industry hub.

Narit said the new measures need official government approval before they come into effect.

Battery cell manufacturing companies need to meet certain conditions to qualify for the allocated incentives. Among these conditions are that the energy density of locally produced batteries should be less than 150 watt-hours per kilogram and their cycle life should not be less than 1000 recharge cycles. Companies must also submit their investment plans by the end of 2027.

The plan expects the number of electric buses to reach 6,000 buses and trucks to 4,000 trucks on the roads in Thailand, compared to about 1,000 electric trucks and buses currently.