ASEAN's "Electric Vehicle Ambition": Leveraging China, Japan, and South Korea, standardizing technology, aiming to become the world's factory.
ASEAN will coordinate the electric vehicle standards of its member countries, including the standardization of charging and charging interfaces, to facilitate the trade of electric vehicles among member countries.
Unified Standardization, Is ASEAN Becoming the Center of Global Electric Vehicle Manufacturing?
According to media reports on Wednesday, ASEAN is committed to establishing an electric vehicle ecosystem and seeking support from neighboring countries in East Asia, including Japan, South Korea, and China, according to the Director of the ASEAN Economic Cooperation Department of the Indonesian Ministry of Foreign Affairs.
Specifically, ASEAN plans to announce a new collaboration plan for the electric vehicle ecosystem under the "APT" mechanism and is expected to officially announce the plan at the 43rd ASEAN Summit scheduled for next month. APT is the abbreviation for the "ASEAN+3" cooperation mechanism, involving the 10 ASEAN member countries and the three countries of Japan, South Korea, and China.
According to the Indonesian diplomat, ASEAN member countries do not all adopt the same standards, rules, and electric vehicle infrastructure. He suggested that Japan, South Korea, and China assist in developing the electric vehicle ecosystem in the region and establish unified standards.
Unified Technical Standards for Regional Development
According to media reports, ASEAN is expected to coordinate the electric vehicle-related standards of its member countries, including unified charging standards and interfaces, to facilitate electric vehicle trade among member countries.
Indonesian officials cited an example that if Indonesia exports electric vehicles to Singapore but the plugs between the two countries are not compatible, it would cause inconvenience.
With unified standards and ecosystems, consumers will benefit from greater convenience, and the development of the regional electric vehicle supply chain is also crucial.
In addition to unified charging standards, coordination is also needed for other safety factors such as batteries and safety standards. The establishment of these unified standards and ecosystems will help promote the development and popularization of electric vehicles in the ASEAN region.
Previously, at the 42nd ASEAN Summit, ASEAN leaders issued a declaration committing to promoting the development of the local electric vehicle industry, not only to meet the needs of the domestic market but also to meet the needs of the global market, demonstrating their ambitious goals.
The declaration emphasized two key strategies: the establishment of unified regional electric vehicle standards to promote seamless cross-border trade and interoperability. ASEAN hopes to cultivate human capital through training and certification programs, simplify trade through unified standards and promotion of compatibility, and create a cohesive electric vehicle market beyond borders. Additionally, ASEAN also aims to cultivate skilled labor through investment in training and certification to drive the transformation of electric vehicles.
ASEAN Countries with Significant Advantages
Not only does ASEAN have ambition, but it also has the necessary conditions to become a center for electric vehicle manufacturing.
Indonesia, the largest country in the region, has the world's largest nickel reserves and is also a major producer of tin and copper, which are essential for electric vehicle batteries.
Vietnam's abundant nickel reserves make it an ideal destination for battery production. VinFast, a well-known private enterprise group in Vietnam, is building a 14-hectare battery factory with an annual capacity of 5 gigawatt-hours.
Thailand, the largest electric vehicle producer and market in the region, is providing incentives to establish itself as a production base for electric vehicles. This strategy will reduce import tariffs and make locally produced electric vehicles more affordable. The dividend of the Thai automotive market has attracted car companies. BYD's first overseas passenger car production base will be established in Thailand. In addition, SAIC, NIO, GAC Aion, Changan, and other car companies, as well as CATL, Honeycomb Energy, and other battery enterprises, have recently revealed that they have already established or will establish factories in Thailand.
Analysis points out that each ASEAN member country is prioritizing the strengthening of their own electric vehicle ecosystem. Subsequently, they may achieve this by adopting fiscal incentives, issuing favorable investment policies, and rapidly establishing well-planned charging infrastructure. These actions not only promote production but also stimulate domestic demand for electric vehicles. Indonesia, Malaysia, Thailand, and Vietnam are actively formulating measures to advance these key objectives.
ASEAN has the potential and ambition to become the world's most important electric vehicle manufacturing center. To ensure success, the region must focus on seizing every opportunity within its reach.