Rojana soars nearly 30% on news of battery-production joint venture

Shares of Rojana Industrial Park (ROJNA) soared to 6.65 baht, surging 29.13 per cent, by the mid-day break on Monday, after it announced a joint venture for battery production with US electric vehicle maker EVLOMO.

ROJNA accounted for 486.5 million baht of transaction value after the morning session ended. The price was the highest since September 2019.

The company signed a memorandum of understanding with EVLOMO to establish a battery cell production plant, with a capacity of 8 gigawatt hours (GWh) which will be the largest scale in the ASEAN region.

ROJNA will hold a 55-per-cent stake in the new venture, with 45 per cent owned by EVLOMO, according to local news reports.

ROJNA said the plan for battery production could generate an investment of USD 1.06 billion or around 33 billion baht, and will be located at Nong Yai, Chonburi inside the Eastern Economic Corridor (EEC).

Initially, the company expects to set up a battery plant with 1 GWh capacity and to begin operation within this year.

An analyst at DBS Vickers said this project will enhance the company’s growth despite the downturn in its industrial real estate business as travel restriction lingers.

“The company’s strengths are steady income from power plants,” he said, pointing that the surge in ROJNA’s price was due to the electronic vehicle trend earlier seen on Energy Absolute (EA) and Banpu Power (BPP).

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