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A Chinese manufacturer of battery materials has announced a $297 million investment to establish a new production facility in Malaysia, aiming to better serve increasing international demand. The factory will be situated in the Gurun Heavy Industrial Park in Kedah and is expected to have an annual capacity of 50,000 tons of lithium battery anode materials. Construction will commence once regulatory approvals are secured and is projected to take approximately two years.
The company has completed initial feasibility assessments and due diligence for this project, and a framework agreement has been signed with key stakeholders. This expansion will allow the company to boost its lithium battery anode materials manufacturing, addressing localization needs from major downstream clients operating battery plants across Southeast Asia. It will also facilitate its international product deployment and strengthen its integration into the global supply chain.
While the company did not specify the names of its primary downstream customers in the announcement, publicly available information suggests that Eve Energy, a significant Chinese client, has already invested in a factory in Kedah. Additionally, Samsung SDI, an important overseas customer, owns a manufacturing plant in Negeri Sembilan, another Malaysian state.
The company specializes in producing mid-to-high-end artificial graphite anode materials. As of the end of last year, it had an annual capacity of 250,000 tons and shipped 143,000 tons in 2025, marking an 8.1% increase from the previous year. Last year, only about 6% of its revenue was generated from international markets.
Shares of the company were trading down by 1.4% at CNY29.23 (USD4.24) during the midday session in Shanghai today.
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