Malaysia is set to begin small-scale production of a homegrown graphene-enhanced lithium-ion battery for electric vehicles (EVs) this month, as part of the country's efforts to develop its battery technology capabilities and expand its presence in battery manufacturing.

The battery was developed at a cost of approximately MYR 20 million (US$ 4.9 million) and will be produced by Gigafactory Malaysia, a wholly owned subsidiary of NanoMalaysia.

NanoMalaysia, incorporated in 2011, is a company limited by guarantee under the Ministry of Science, Technology and Innovation (MOSTI) and has been tasked with developing nanotechnology, EV component technologies, energy storage solutions and initiatives related to the hydrogen economy.

"We are on the verge of operationalising Malaysia's first local battery technology production factory," said Rezal Khairi Ahmad, Chief Executive Officer of NanoMalaysia.

Rezal described the project as potentially the first of its kind in ASEAN, stating that no other country in the region is currently producing a homegrown battery technology of this nature.

Graphene-enhanced NMC battery technology

The battery uses nickel-manganese-cobalt (NMC) chemistry rather than lithium iron phosphate (LFP) chemistry and incorporates graphene in place of graphite in the negative electrode. Graphite remains the dominant material used in the negative electrode of most commercial lithium-ion batteries. According to Rezal, replacing graphite with graphene enables greater energy storage capacity.

"The technology embraces a fundamental principle: graphene, rather than graphite, can increase storage capacity by up to three times," he said.

He further added that the nanostructures of graphene provide a larger surface area capable of accommodating a higher density of charge carriers.

"We have used this principle to develop a unique process that incorporates only a small amount of graphene but increases energy density by around 60% at the electrode level compared with commercially available options," Rezal explained.

The battery is designed for applications requiring energy densities above 200 Wh/kg and is projected to deliver a driving range of up to 640 km on a single charge. While NanoMalaysia has not disclosed the battery's capacity or the specific vehicle type used to calculate the range figure, the company stated that the battery supports fast-charging capability.

According to Rezal, under optimal operating conditions, the battery can achieve a full charge in as little as 12 minutes.

Production plans and factory capacity

Commercial-scale pilot production is scheduled to begin in July, with NanoMalaysia aiming to expand operations to megawatt-hour-scale production as early as September 2026. Manufacturing will take place at a 15,000-square-foot (1,394-square-metre) facility located in Suria Industrial Park in Sepang, approximately 50 km from Kuala Lumpur.

At full operational scale, the facility is expected to produce around one megawatt-hour (MWh) of battery capacity annually, equivalent to approximately 92,000 battery cells. NanoMalaysia has already secured confirmed orders for a 25 kWh battery from a local organisation, while additional agreements are currently being refined and finalised.

Although pricing details have not been disclosed, Rezal stated that local production could reduce EV costs by eliminating import duties, logistics expenses and storage costs.

"Battery contributes at least 40% of EV cost," he said. "Both local and international EV manufacturers stand to benefit from the above-mentioned advantages, making locally manufactured or assembled EVs more affordable and accessible."

Raw material strategy and export ambitions

As part of its long-term growth strategy, NanoMalaysia is seeking a strategic partnership with Indonesia to secure supplies of nickel, a key raw material used in NMC battery production. The company is exploring opportunities through a memorandum of understanding signed with Indonesia's National Battery Research Institute.

"We are also planning for the long term, and considering that nickel is abundant in Indonesia, we are looking at a strategic partnership based on the memorandum of understanding signed with the National Battery Research Institute of Indonesia for potential bulk supply, particularly once we scale up to gigafactory-level production," Rezal said.

Potential export markets for the batteries include Indonesia, South Korea, India and Pakistan. NanoMalaysia is also developing plans to recycle end-of-life batteries to support raw material availability and battery manufacturing operations.

Potential impact on Malaysia's EV industry

Industry observers said the project could affect Malaysia's position within the global EV supply chain. Yeah Kim Leng, Professor of Economics at Sunway University, described the locally developed battery as a potentially important development for Malaysia's industrial sector.

He stated that the battery "could be a game-changing development for Malaysia's industrial development", particularly in supporting the country's efforts to move up the value chain and enter fast-growing, high-technology and emerging industries.

According to Yeah, the development of domestic battery technology could also support wider EV adoption in Malaysia by improving affordability and reducing dependence on imported components.

"It will also enhance battery EV adoption in the country, which is certainly needed in the face of high fossil fuel prices, supply disruptions and the nation's transition to clean energy," he said.

Malaysia's broader EV ambitions

The battery initiative comes as Malaysia seeks to expand its role in advanced technology industries and strengthen its position within the electric mobility sector. Last week, Economy Minister Akmal Nasrullah Mohd Nasir stated that Malaysia must move beyond its traditional role as a manufacturing base.

"We need to build an economy capable of creating higher value, developing technology, strengthening domestic capabilities and producing future talent that can compete globally," Akmal was quoted as saying in media reports.

Automakers are also increasingly targeting Malaysia's EV market. China's BYD recently announced that it will launch the Denza Z9GT in Malaysia on July 15th. The model supports the company's ultra-fast charging technology and will mark its first Asia-Pacific market launch outside China.

The introduction of NanoMalaysia's graphene-enhanced battery technology forms part of Malaysia's efforts to develop domestic EV technologies, strengthen industrial capabilities and participate in the transition towards electrified transportation.