Philippines primed as hub for battery production

MANILA, Philippines — The Department of Trade and Industry (DTI) is eyeing to position the Philippines in the battery segment of the global market.

“Aside from our commitment to combat climate change through the use of electric vehicles (EVs), the DTI also aims to aggressively position the Philippines in the battery segment of the global market,” Trade Secretary Alfredo Pascual said at the signing of a lease agreement between Envirotech Vehicles (EVT) and Berthaphil Inc.

“Given the presence of abundant nickel and cobalt reserves, the Philippine government is consistently promoting the country as a potential manufacturing hub for battery production,” he said.

Pascual said the DTI is seeking to create an end-to-end value chain from the mining and processing of green metals to the local manufacture of batteries, charging stations or units, and electric vehicles.

He said the investment of EVT in the country is a key cog in modernizing the Philippine automotive industry.

EVT is a US-based transportation industry provider, specializing in all-electric vehicles for commercial and industrial use. Following its success in the US, EVT is now entering the Philippines and is geared to set up a manufacturing plant for EVs at the Clark Freeport Zone.

The DTI emphasized that global shift to green products such as EVs is crucial to address environmental problems caused by climate change.

“As the current administration aspires to enter the global EV value chain, several legislations have been passed to develop the local EV industry such as the comprehensive roadmap for the Electric Vehicle Industry and the Electric Vehicle Industry Development Act (EVIDA), which will require the government to implement and allocate five percent of their fleet to EVs,” it said.

Under the EVIDA Act, fiscal and non-fiscal incentives are provided to encourage the purchase and utilization of EVs by Filipino consumers. The DTI, through the  Board of Investments,  shall recommend an EV incentive strategy to the Fiscal Incentives Review Board for approval, similar to the Comprehensive Automotive Resurgence Strategy Program to ensure the creation of an enabling business environment for the country’s EV industry.

Aside from tax incentives available under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, importation of EVs are now duty-free under Executive Order 12.

The tariff rate of EV passenger cars, buses, minibuses, vans, trucks, kick-scooters, and bicycles are reduced to zero for the next five years. This is complementary with DTI’s goal of encouraging EV investments by lowering its importation costs, introducing its viability to the public, encouraging shift to less oil-dependent transport options, and improving the country’s energy security.

Moreover, Pascual recognized the significant role played by EVT’s investment and expansion in developing and realizing the potentials of the country’s EV industry.

“The growth and development of the EV industry is crucial in making green investments and jobs happen in the Philippines as we aim to generate stable, high-quality, and better-paying jobs for Filipinos, while achieving shared prosperity for all,” Pascual said.