Despite the fact that Global Power Synergy Public Company Limited (GPSC) is the power flagship of PTT group, the growth prospects for the company had been limited.
At present, domestic reserve power capacity has already exceeded the demand by 30-40%, hence there are few opportunities for new PPAs in the near future…which means growing a business could be harder for GPSC.
Expanding business internationally is also not easy. PTT group has the 600MW Gas to Power project involving 60,000 million baht in investment in Myanmar on which GPSC and PTTEP will jointly cooperate. However, because of a recent military coup in Myanmar, the future of this project is unclear.
In order to break through the limited growth of the company, GPSC has gone straight forward to a new s-curve industry, a battery manufacturing business, one of global megatrends for business.
At the end of 2019, GPSC teamed up with 24M Technologies, a research and development Lithium-Ion battery production startup in the United States, to conduct R&D activities at the pilot plant by using a semi-solid technology.
Later in early 2020, GPSC signed a contract with Thai Takasago Company Limited, Japanese construction company specialized in battery plants, to construct the first semi-solid battery pilot plant in Thailand on a 12-rai land plot in Map Ta Phut Industrial Estate in Rayong province.
Even though the production capacity of the plant is only 30 MWh, still a good start for GPSC and PTT group.
Furthermore, GPSC recently invested 500 million baht to acquire 11.1% stake in Anhui Axxiva New Energy Technology Co.,Ltd. (AXXIVA), which operates a battery manufacturing business in the People’s Republic of China at production capacity of 1 GWh per annum.
Such investment was subjected to enhance the competitiveness of GPSC’s battery manufacturing business rapidly through the semi-solid innovation and knowledge-sharing of 24M Technologies. This collaboration will also reduce the cost of raw materials and electrode active materials.
Moreover, it will strengthen GPSC’s customer base, as well as give access to more markets. What an impressive move, GPSC!