BYD Scraps Malaysian Plant as Solid-State Battery Timeline Slips to 2027

BYD drops its Tanjong Malim assembly plant, plans a 2027 solid-state battery demo and targets 2030 mass production as overseas sales surge.

BYD has pulled the plug on a Malaysian assembly plant it announced only weeks ago, even as the company pushes ahead with an ambitious solid-state battery programme and racks up record orders for its newest flagship SUV. The contrasting developments paint a picture of a manufacturer moving aggressively on technology and overseas sales while keeping its manufacturing footprint deliberately fluid.

Malaysia Reversal

The plant in Tanjong Malim, unveiled in August 2025 with production slated to begin in 2026, will not be built. Jacob Ma, the company's Malaysian managing director, said BYD is instead in advanced talks with an established local CKD partner to handle assembly on the ground. He declined to name the partner, the location, the model line-up or a start date. Market speculation has pointed to Sime Motors' Inokom facility in Kulim, though nothing has been confirmed.

The about-face underscores a willingness to abandon announced sites rather than commit to fixed plans. That flexibility is already on display in Brazil, where BYD's Bahia plant employs 5,500 people directly and is targeting a local content share above 50% by 2027.

Solid-State Target Set for 2027

On the technology front, BYD executive Stella Li said in an interview in Valencia that the group intends to show its first vehicle powered by a self-developed solid-state battery in 2027. Subsidiary FinDreams is working on a sulphide solid electrolyte known as LPSC, with prototype cells of 20 and 60 ampere-hours targeting an energy density of roughly 400 watt-hours per kilogram.

FinDreams chief technology officer Sun Huajun put the test fleet at about 1,000 vehicles from 2027, with mass production targeted for around 2030. The first applications are expected in the premium Yangwang and Denza brands. BYD representative Lian Yubo expects solid-state technology and conventional lithium-ion batteries to coexist for another 15 to 20 years.

The company is not alone in the race. Toyota and Idemitsu are working to a 2027/28 timeframe, while Samsung SDI is targeting 2027. Higher energy density promises gains in both range and safety, making the next battery generation one of the key differentiators in the global EV market. For investors, the timeline matters: with series maturity not expected until around 2030, the announcement is a strategic signal rather than a near-term revenue driver.

Order Book and Regional Expansion

Demand for BYD's vehicles has not been waiting for new battery chemistry. The Sealion 08, the group's flagship SUV, drew more than 12,000 orders within 24 hours of its sales launch on 2 September, according to company figures.

Southeast Asia is emerging as a key growth engine. In Subang, West Java, BYD inaugurated a new factory worth the equivalent of Rp16 trillion and handed over its 100,000th vehicle to an Indonesian customer. In the Philippines, BYD Cars Philippines — a unit of Ayala subsidiary ACMobility — reported sales of 28,399 vehicles for January to August 2026, a 99% jump on the prior-year period and already above its full-year 2025 volume.

Overseas sales overall rose 134.5% in August to 189,466 vehicles, according to Reuters calculations based on company data, while global sales climbed 17.8% to 440,293 units. That momentum explains why Indonesia and the Philippines are gaining strategic weight: new plants and local distribution partners underpin growth that the Chinese home market is currently not delivering to the same degree.

Policy Uncertainty Lingers

International expansion carries political risk. US President Trump, ahead of a planned summit with Chinese leader Xi in late September, signalled that Chinese automakers could be permitted to produce in the United States — while ruling out imports of finished vehicles. US automakers and lawmakers have rejected the proposal, and questions over ownership limits, tariffs and data rules remain unresolved.

Shares Under Pressure

The equity has yet to reflect the operational momentum. The stock closed Friday at EUR 8.81, up 1.2% on the day, but down 6.2% over the week and 18% since the start of the year. It trades well below its 50-day moving average of EUR 9.78, pointing to a persistently weak short-term trend. Pre-market indications put the shares at EUR 8.90, roughly 29% below the 52-week high of EUR 12.49 set on 2 October, with a year-to-date decline of 17%.

A relative strength index of 33.7 suggests oversold conditions that could allow for stabilisation in the near term. The fundamental questions over market access and plant planning, however, remain untouched by the technical picture.