Malaysia is preparing to begin small-scale production of locally developed electric vehicle batteries this month, according to a report by Nikkei Asia. The project, led by Gigafactory Malaysia—a wholly owned subsidiary of NanoMalaysia Bhd under the Ministry of Science, Technology and Innovation—was carried out at an estimated cost of RM20 million.
Rezal Khairi Ahmad, chief executive officer of NanoMalaysia, described the initiative as a milestone for the country’s battery industry. “We are on the verge of operationalizing Malaysia’s first local battery technology production factory,” he told Nikkei Asia. He added that this effort is likely the first of its kind in ASEAN, where no other nation currently manufactures home-grown battery technology.
Battery modules typically represent up to 40% of an electric vehicle’s total cost, and most commercial EV batteries use lithium-ion chemistry. According to the International Energy Agency, China produced more than 80% of global EV batteries in 2025. By contrast, Gigafactory Malaysia’s initial product will use nickel-manganese-cobalt chemistry enhanced with graphene. This formulation is expected to deliver up to three times the storage capacity of conventional designs.
While the July rollout will focus on pilot and demonstration volumes, Rezal said the factory aims to scale up to full megawatt-hour capacity by September 2026. The phased approach is intended to validate production processes and battery performance before ramping up to larger volumes.
The move aligns with Malaysia’s broader push to strengthen its position in the electric mobility sector and reduce reliance on foreign-made battery cells. If successful, the facility could attract further investment in local research, development and manufacturing, supporting the nation’s goals for technological innovation and sustainable transportation.
Source: The Edge Malaysia
