BMW to add another hybrid, EV battery plant in Thailand

Milan Nedeljković, BMW Board Member for Production, and several key executives from Thailand and the German government shoveled dirt yesterday to signal the ground-breaking of the newest BMW battery plant in the country.

BMW has started constructing a 1.6 million baht (42 million euros or PHP 2.5 billion), 4,000-square meter high-voltage battery assembly facility in Rayong, Thailand, that converts imported battery cells into modules that integrate into Gen-5 high-voltage batteries.

“Local production of high-voltage batteries in Rayong is the next logical step in the continued electrification of our production network. Once again, the principle of ‘local for local’ applies, supporting economic development, employment opportunities, and knowledge transfer in Thailand and the ASEAN region,” said Nedeljković.

The high-voltage battery production plant is part of BMW’s electrification strategy in Thailand, including an upcoming new facility to manufacture fully electric vehicles. Local BEV (battery electric vehicle) production begins in the second half of 2025.

BMW has been making high-voltage batteries in Thailand for locally-made plug-in hybrids since 2019. Plant Rayong manufactures around two dozen BMW, MINI, and BMW Motorrad models for the Thai for various ASEAN markets. In 2023, output totaled more than 12,000 cars and almost 11,000 motorcycles.

BMW Philippines gets its units from Germany and China, so this development may not directly have a positive impact on the prices of BMW EVs (electric vehicles) in our market. However, the availability of batteries in the region will assist in driving down the cost of shipping, which could help bring prices of BMW EVs in the future.