THE Philippines can expand local production of electric vehicle (EV) parts as the government rolls out its strategy to attract more investment into the sector, the Department of Science and Technology (DOST) said.
Science Secretary Renato Solidum Jr. told the BusinessMirror that the country could build domestic capabilities in several parts of the EV supply chain even as manufacturers remain dependent on imports for components that are not yet produced locally.
‘There are certain parts that are still abroad. We can’t do anything about it; that’s how the global supply chain is,’ Solidum said in an exclusive interview on the sidelines of the opening of the DOST Regional Science, Technology and Innovation Week in Region 9 last week.
‘But there are many parts that can be locally sourced,’ he added.
He cited vehicle chassis and body components as areas where local manufacturers could potentially expand, including through the use of composite materials made from Philippine tropical fibers.
‘For example, we can design chassis. We can do it here…the shell of vehicles. We can use composite materials using tropical fabrics. So there are a lot of things we can do,’ Solidum said.
The Board of Investments (BOI), for its part, has identified several automotive components that can be manufactured locally, including chassis and sub-frames, body panels, bumpers, instrument panels, electrical systems, automotive glass and seats.
The country is also seeking to develop its battery manufacturing capability. In September 2024, Australian firm StB GIGA Factory inaugurated a lithium-iron-phosphate battery manufacturing facility in New Clark City, with a planned production capacity of up to 2 gigawatt-hours annually by 2030.
However, battery manufacturing remains a gap in the country’s export development strategy, with limited domestic processing of minerals needed for battery production despite the Philippines’ substantial nickel resources.
Yet, Solidum said DOST has received proposals involving technologies. ‘But there are a lot of proposals for batteries. Different batteries,’ he said.
The push to build local EV manufacturing is being pursued alongside the government’s Electric Vehicle Industry Strategy (EVIS), which provides incentives intended to attract investments in EV and component manufacturing.
For the science chief, developing the local supply chain will require more than attracting vehicle assemblers. The country also needs stronger research and development (RandD), charging infrastructure and manufacturing capacity. ‘We already have an RandD center, but hopefully the other private sector would have their own RandD,’ he said, referring to the E-Mobility Research and Development Center established under DOST’s Niche Centers in the Regions for RandD program.
Private-sector participation in RandD would help expand the technologies available for local EV manufacturing, he said.
The country also needs a wider charging network as EV adoption grows. While charging equipment may be imported, DOST is also developing local charging technologies and working with local governments, he said.
Beyond technology and components, Solidum said the country needs capital to establish factories capable of producing EVs at scale. ‘That’s what we need, capital, investment, to build plants that will support local production to create more jobs,’ he said.
A larger domestic EV manufacturing base could also generate jobs beyond factories, including in after-sales services, he added.
Solidum said DOST is continuing to engage businesses that can invest in manufacturing facilities or adopt technologies developed through government-supported research as the country builds its EV industry.