StB Giga Factory has officially opened its doors as the Philippines’ first manufacturing plant for advanced lithium iron phosphate (LFP) batteries for residential, industrial, and utility-scale Battery Energy Storage Systems (BESS). This rapid transformation positions the Philippines as a rising force for smart and sustainable investments in Southeast Asia, marking a major leap toward a cleaner, greener future.
The Electric Vehicle Association of the Philippines (EVAP) expects the entry of investments in EV assembly in the Philippines with two critical policy directions granting players incentives set to be finalized soon.
Ferdinand Raquelsantos, EVAP chairman emeritus, in an interview said the government hopes to submit this year for President Marcos Jr.’s approval the Electric Vehicle Incentives Scheme (EVIS) which is similar to the Comprehensive Automotive Resurgence Strategy program that would grant fiscal incentives including production volume incentives to assemblers of EVs.
Raquelsantos said the Philippines-South Korea free trade agreement (FTA) will also give the EV industry a needed boost under the tariff elimination scheme on industrial goods.
Raquelsantos said companies like Kia and BYD have all been reported to be interested in EV manufacturing in the Philippines but no firm plans have been announced so far.
EVIS also grants perks for investments in mining and processing of green metals for EV, autoelectronics, and charging infrastructure.
For e-vehicle battery manufacturers, the government is eyeing to provide support amounting to 50 percent of the capital expenditure.
The first factory for EV batteries in the Philippines was inaugurated just last week. The Australian-owned lithium-iron-phosphate facility of StB Giga Factory Inc. in Tarlac aims to produce two gigawatt-hours of batteries per year by 2030, powering about 18,000 EVs or nearly half a million home battery systems.
