Changhong Energy, through its subsidiary Changhong Sanjie, has announced a planned investment of approximately 1 billion RMB (~$137 million USD) to build a new high-rate lithium-ion battery production base in Malaysia. The facility will focus on producing 18650 and 21700 cylindrical cells, with a combined annual capacity of 170 million units. These batteries are designed for applications including power tools and unmanned aerial vehicles (UAVs).
This strategic move is aimed at circumventing international trade barriers, such as tariffs, and better serving overseas customers that require high-discharge-rate batteries. The company expects the new plant to enhance its global competitiveness and reduce supply chain risks.
For B2B buyers in industries like power tools, UAVs, and other high-drain devices, this expansion diversifies the global supply chain for cylindrical lithium-ion cells. It potentially offers more competitive pricing and reduced lead times for markets outside China. The move also reflects a broader trend of Chinese battery manufacturers shifting production to Southeast Asia to enable localized supply, meet regional demand, and mitigate geopolitical risks.
According to the company's announcement, the Malaysia base is expected to start operations following regulatory approvals and construction timelines. This development underscores the ongoing realignment of global battery supply chains.
