GSS Energy, MECOM partner for EV business dev’t in Southeast Asia

They will focus on Singapore, Thailand, Indonesia, and Malaysia.

SGX-listed GSS Energy Limited and HKEX main board-listed MECOM Power and Construction Limited entered a non-binding memorandum of understanding (MOU) to form a strategic cooperation to develop an electric vehicle (EV) business in Southeast Asia.

In a joint release, they said the EV business development is focused on Singapore, Thailand, Indonesia and Malaysia for a term of three years starting from the MOU execution.

Under the MOU, which is subject to Binding Documentation, the strategic cooperation will focus on the design, production, installation and maintenance of the EV charging system, as well as its sales and marketing.

READ MORE: What it means for Singapore now that the Electric Vehichle Charging Bill has been passed in Parliament

They will also design, produce, sell and market EVs such as four-wheelers and/or electric motorcycles, and distribute Iso-branded eclectic motorcycles of GSS Energy subsidiary Giken Mobility in the Guangdong Greater Bay Area.

The MOU also covers the manufacturing and production of battery packs and related charging/swapping solutions for EV two-wheelers at GSS Energy Group’s manufacturing facilities, and investing or procuring investments in the projects.

MECOM and GSS Energy should also “use their respective best efforts” to negotiate the binding documentation in line with the terms and conditions of each project during the term.

Each project under the Strategic Cooperation shall be implemented in accordance with the terms of the documentation within six months from the MOU signing or extended to any date agreed upon.