Proton Sets Up New EV Plant, Signaling Malaysia’s Strong Strides To Grow Its EV Ecosystem – CleanTechnica

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Proton is initiating the construction of a new EV production plant at its high-tech Tanjung Malim facility. The project, which began on February 7, 2025, is targeted for completion by the end of the year, with an investment of 82 million ringgit ($18.46 million).

The first phase of the assembly plant is planned to have an initial capacity of 20,000 units per year. Upon completion, the facility will produce multiple models based on the Global Modular Architecture (GMA) platform, starting with the Proton e.MAS 7, marking the first EV model from a Malaysian automotive brand. Proton has plans for a second phase to increase production capacity to 45,000 units per annum, contingent on sales demand in Malaysia and overseas markets. Li Chunrong, Proton’s chief executive officer, stated that the vehicles produced at the new plant will serve both domestic and export markets, aiming to drive the growth of the EV market.

He emphasized that the factory would focus on producing the Proton e.MAS 7 and future new energy vehicle offerings as Proton expands its model range. “Ultimately, we hope our success will establish a modern and capable automotive ecosystem to encourage more original equipment manufacturers to consider Malaysia and the Automotive High-Tech Valley as a regional base for EVs,” he added.

The Proton plant makes Malaysia on fast-track mode, a sort of catch-up in its EV ecosystem development. Aside from the national automaker’s plant, there are other significant strides to hasten development in the sector.

The company has outlined plans for a second phase of expansion at the Tanjung Malim site, potentially increasing annual production capacity to 45,000 units, contingent on market demand. While utilizing advanced production technologies, Proton anticipates the new plant will generate over 200 specialized jobs in EV industrialization and technical services for the local community. The company also expects the plant’s operations to stimulate growth within the Automotive High Tech Valley’s vendor community as demand for parts increases.

Adding To The EV Ecosystem

In addition to Proton’s endeavors, EP Manufacturing Berhad (EPMB) has announced plans to establish an automotive manufacturing facility in Melaka. The facility, set to be developed in several phases at the HICOM Pegoh Industrial Park, aims to serve as a manufacturing hub for energy-efficient vehicles (EEVs) and EVs in Malaysia.

The first phase is expected to have a potential annual production capacity of 30,000 vehicles and is anticipated to be operational by the end of 2024. This development is projected to generate approximately 1,000 new jobs in Melaka, strengthening the local automotive industry and accelerating Malaysia’s vision to become a regional hub for EVs and EEVs. Ahmad Razlan Mohamed, Group Chief Executive Officer of EPMB, expressed enthusiasm about the project, stating that the establishment of an EV manufacturing facility is a pivotal step in realizing their comprehensive vision of developing a 360° supply chain for Malaysia’s EV market.

Samsung Is A Major Investor

In February 12, 2024, Samsung Electronics Executive Chairman Lee Jae-yong visited the Samsung SDI’s battery production facilities in Seremban, Malaysia. Lee emphasized the importance of long-term investment.

“We shouldn’t be intimidated by difficulties, and make bold investments,” he stated. “Let’s not be carried away by short-term results — we should lead the change by boldly taking on challenges,” he said, signaling a commitment to continued growth despite a recent slowdown in global EV demand. He met with Samsung SDI executives, including CEO Choi Yoon-ho, as he inspected the facilities.

The Seremban factory, established in 1991, has been producing battery cells since 2012. Samsung SDI’s second plant at the site, a RM7 billion ($1.3-billion) investment, is scheduled for completion in 2025. Partial production of 21700 cylindrical batteries under the PRiMX brand, intended for EVs, energy storage systems, and electric power tools, is expected to begin this year.

This  investment marks the company’s first production location in Southeast Asia and Malaysia’s inaugural EV battery cell facility. According to reports, the plant is now entering its operational phase.

This year, Chinese battery manufacturer EVE Energy has announced plans to invest in a new factory in the Kulim District, Kedah. Expected to be completed by 2027, the plant will produce cylindrical-format NMC battery cells for use in power tools, two-wheeled vehicles, and cleaning devices.

These initiatives reflect Malaysia’s commitment to advancing its automotive industry and positioning itself as a key player in the regional EV market.