Key facts
- Malaysia will begin small-scale production of a homegrown graphene-enhanced lithium-ion EV battery in July.
- The battery project is considered potentially the first of its kind in the ASEAN region.
- Proton's new EV assembly plant in Tanjung Malim, Perak, has an initial capacity of 20,000 vehicles annually.
- The Proton e.MAS 7 is Malaysia's first homegrown EV and currently leads the nation's EV sales.
- Malaysia aims to increase EVs to 50% of new car sales by 2040.
Malaysia is set to commence initial production of its own graphene-enhanced lithium-ion electric vehicle battery in July, signaling a significant step in the nation's ambition to advance its technological manufacturing capabilities. NanoMalaysia CEO Rezal Khairi Ahmad stated that the project is likely the first of its kind in the ASEAN region and that the country aims to export these batteries to markets including Indonesia, South Korea, India, and Pakistan.
This development coincides with Proton's recent inauguration of its dedicated EV assembly plant in Tanjung Malim, Perak, by Prime Minister Anwar Ibrahim on September 4. The RM82 million facility, Malaysia's first purpose-built EV factory, has an initial annual production capacity of 20,000 units, scalable to 45,000. The plant's first model is the Proton e.MAS 7, Malaysia's first homegrown EV, which has become the nation's best-selling electric car. Proton's second EV, the e.MAS 5, will also be assembled there.
The Malaysian EV market is experiencing rapid growth, partly due to tax exemptions. The Proton e.MAS 7 leads sales, followed by models from BYD and Tesla. Competition is intensifying with over 15 Chinese automakers present in Malaysia, many of whom are establishing local manufacturing and assembly operations. BYD and Chery are expanding their presence, and Malaysia's second national automaker, Perodua, is expected to launch its own EV soon.
To support the growing EV ecosystem, initiatives like studying a dedicated railway cargo network for the Automotive High Tech Valley (AHTV) are underway, aiming to enhance logistics efficiency and reduce emissions. The AHTV is positioned as a hub for new energy and next-generation vehicles, attracting significant foreign investment.