Shangtai to Build $154mn Battery Anode Plant in Malaysia

Shangtai Tech

Chinese lithium-ion battery anode manufacturer Shijiazhuang Shangtai has announced plans to establish a production facility in Kedah, Malaysia. The Shenzhen-listed company approved the creation of a wholly-owned subsidiary, Shangtai Technology Malaysia, to oversee the development of the plant, which is projected to cost $154 million and have a production capacity of 50,000 tons per year for battery anode materials.

Construction Timeline and Strategic Expansion

While the site is expected to be completed within 24 months, Shangtai has yet to disclose the start date for construction. This new facility forms part of Shangtai's broader strategy to expand its production capacity and gain a competitive edge in the global battery market.

In the first half of 2024 alone, Shangtai sold 83,800 tons of anode materials, marking a 61% increase compared to the 52,200 tons sold during the same period in 2023. The company is also constructing a 100,000-ton-per-year production plant in Wuji County, Shijiazhuang City, Hebei Province, China, which is set for completion by 2026. Additionally, Shangtai operates a 200,000-ton-per-year complex in Xiyang County, Jinzhong City, Shanxi Province.

Context of Chinese Companies' Global Expansion

The move by Shangtai reflects a larger trend of Chinese companies seeking overseas expansion to mitigate rising geopolitical restrictions, such as the US Inflation Reduction Act and the EU's Critical Raw Material Act. Another key player, BTR, recently launched its first phase of an overseas anode material plant in Indonesia with an 80,000-ton-per-year capacity on August 7. Furthermore, BTR is also developing cathode and anode material plants in Tangier, Morocco, with capacities of 50,000 tons and 60,000 tons per year, respectively.

This strategic push not only strengthens China's position in the global battery material supply chain but also enhances production capabilities to meet growing demand for electric vehicle components and renewable energy storage solutions.