Leoch plans second lead battery plants in Mexico, Malaysia

Leoch plans second lead battery plants in Mexico, Malaysia

Leoch plans second lead battery plants in Mexico, Malaysia 1024 746 Batteries International

April 3, 2024: Leoch International has revealed plans to build two additional lead battery manufacturing plants, one in Malaysia and the other in Mexico, as well as expanding capacity at its lithium battery lines in Anhui, China and Vietnam.

Owner and chairman Dong Li said in Leoch’s annual report and full-year results for 2023, published on March 26, that construction planning for what will be its second Mexico plant is underway — with the launch of test production in the second quarter of 2025.

Leoch did not disclose the exact location of either of the new facilities.

Meanwhile, the group’s first plant in Mexico, at Monterrey, is expected to start operations within the next few months.

In Malaysia, production test runs for the second plant could start as early as the end of this year or early 2025, Leoch said.

During last year, the group also established a wholly-owned trading subsidiary in Indonesia, expanding its existing sales distribution presence of more than 100 countries and regions.

Leoch said it also acquired a lead recycling plant in China in December 2023 and is working on a re-opening plan for the facility.

The group posted a net profit for 2023 of Rmb567.8 million ($79 million), compared to Rmb503 million in the previous year.

During the period, revenue from batteries and related items business amounted to Rmb11.5 million, representing an increase of 9.7% over the year-ago period. The increase in revenue from batteries was contributed by the 19.4% growth rate in the Chinese market and 0.3% overseas.

Sales of SLI batteries for the group amounted to Rmb3.7 billion (2022: Rmb2.9 billion), representing an increase of 29% over the previous year. This accounted for about 33% of the total revenue from battery sales.

 The motive power batteries business, including but not limited to applications in EVs, electric forklifts and other battery-driven product, saw sales revenue of Rmb1.2 billion (2022: Rmb1.25 billion), representing a decrease of 3.9% compared to the previous year.