ADB Bacls 2.4B Thai Baht Deal to Support Electric Tuktuks in Thailand and Battery Production in PRC
Business
“Asia and the Pacific accounts for more than half of global greenhouse gas emissions, and innovative solutions such as electric vehicles for micro-scale transit can ease the transition from fossil fuels,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Electric vehicle adoption into the public transport sector is a powerful game changer that can help to cut emissions at densely populated urban centers right across the region.”
The funding will also support a 1.3-gigawatt-hour expansion of a lithium-ion electric vehicle battery manufacturing facility in Jiangsu province in the People’s Republic of China (PRC).
The package also includes a concessional loan of up to $10.7 million from the ADB-administered Clean Technology Fund. ADB will also implement technical assistance, funded by the ASEAN Catalytic Green Finance Facility, to assess the potential for micro-scale transit services in other Southeast Asia cities.
Thailand is among the most urbanized countries in Southeast Asia, and its transport sector contributes a third of the nation's carbon dioxide emissions. The country’s iconic tuktuks play a vital role in the transport system, linking communities to each other and to the main public transport arteries. The e-tuktuks have been operated under the brand MuvMi, managed by Urban Mobility Tech Company Limited, a BANPU associate company. MuvMi has more than 600 e-tuktuks operating in 12 major areas throughout Bangkok.
The availability of batteries is crucial for the widespread adoption of electric vehicles. The PRC plays a prominent role in electric vehicle battery development and energy storage, contributing significantly to global supply. The growth of the battery industry in the PRC has encouraged the adoption of electric vehicle solutions and has the potential to reduce carbon emissions both within the PRC and globally.