Posted on 03 Jul 2024
The Philippines, a nickel-producing country, is facing a dilemma around Chinese investment in its new energy vehicle industry chain, Kallanish understands.
Filipino secretary of information and communications technology, Ivan John E. Uy, told Chinese media 21 Century last week that his country is “very open to all forms of foreign direct investment...We have relaxed restrictions in some industries in the Public Service Act to allow foreign companies to own a larger percentage of equity.”
In the exclusive interview carried out during the 2024 Summer Davos Forum held in Dalian, China, he said there were opportunities for Chinese EV companies to invest in the country.
“In fact, BYD has already started to deploy in the Philippines, and we will see further development in the future,” he says. “I think people have a strong interest and demand for EVs, and the benefits and opportunities in this industry are obvious. The key lies in price and some related support. In order to support the EV industry, the construction and improvement of supporting infrastructure is indispensable. We will wait and see.”
Uy also mentions the country’s upstream value chain opportunity, focusing on nickel mining and processing. “The Philippines is a major global exporter of nickel ore, a key component of EV batteries. Therefore, we also encourage investors to enter battery production, mineral processing and many other areas,” he says.
However, Ceferino S Rodolfo, Filipino under-secretary of trade and industry told the Financial Times that Manila is pitching itself for western countries as an alternative to Chinese supply. He suggests the Philippines is looking to attract upstream investment from the US, UK, Australia, Japan and South Korea.
“It’s a race between China and the US... Tax breaks and policies that favour non-Chinese companies could attract investments to the Philippines, which could prove a viable alternative for Washington to de-risk its nickel supply chain,” Rodolfo is quoted as saying.
In April, Japan, the US and the Philippines agreed to forge ties to strengthen supply chains of nickel at a trilateral summit at the White House.
According to the IEA, Indonesia and the Philippines represent 45% of global nickel output today. In addition to investing in downstream opportunities in Indonesia, Chinese investors have also been sourcing nickel ore from the Philippines or New Caledonia. The Philippines is expected to remain the second-largest nickel producer in 2030 with an 8% global share.
Source:Kallanish
