Novolyte Breaks Ground on Advanced Battery Electrolyte Plant in Kedah, Strengthening Malaysia’s New Energy Manufacturing Drive
KEDAH, 19 January: Novolyte Technology Sdn. Bhd., a wholly owned subsidiary of China-based Shenzhen Capchem Technology Co., Ltd., has officially launched construction of its new battery electrolyte manufacturing facility at Kulim Hi-Tech Park, marking a major investment in Malaysia’s fast-growing advanced and new energy manufacturing ecosystem.
The groundbreaking ceremony was officiated by Kedah EXCO for Industry and Investment, Science, Technology and Innovation, and Higher Education, YB Prof. Dr. Haim Hilman Abdullah, and witnessed by Mr. Zhou Youbin, Consul General of the People’s Republic of China in Penang. Also present were senior representatives from federal and state agencies, including the Malaysian Investment Development Authority (MIDA), Invest Kedah Berhad, Kulim Technology Park Corporation, and customs authorities, as well as community leaders and Novolyte and Capchem management.
The new plant, scheduled to be commissioned in the third quarter of 2026, will have an annual production capacity of approximately 30,000 metric tons of battery electrolytes. It is designed to serve both domestic demand and the wider Southeast Asian market, while supporting the development of a high-value talent pool and acting as a catalyst for the region’s emerging new energy industry.
MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment underscores Malaysia’s competitiveness in advanced manufacturing and aligns closely with the objectives of the New Industrial Master Plan (NIMP) 2030. He noted that beyond strengthening the national industrial ecosystem, Novolyte’s presence would generate spillover benefits for local industries and provide Malaysian talent with exposure to cutting-edge battery technologies.
Encik Noor Ikhsan Abdul Aziz, Chief Operating Officer of Invest Kedah Berhad, welcomed Novolyte’s decision to expand in Kedah, describing it as a strong vote of confidence in the state’s industrial infrastructure and investment climate. He said the project supports Kedah’s ambition to grow its new energy and high-value manufacturing sectors while creating quality jobs, enhancing local supply chains, and contributing to long-term economic growth.
From the investor’s perspective, Mr. Zhou Dawen, Vice Chairman of Shenzhen Capchem Technology Co., Ltd., said the decision to invest in Kedah reflects confidence in Southeast Asia’s new energy market potential. He added that Novolyte aims to set a regional benchmark for high-end electronic chemicals by addressing the local supply gap for lithium battery electrolytes and meeting global customers’ needs for more localized and resilient supply chains. He also expressed appreciation for Malaysia’s supportive investment policies, noting the project’s contribution to the global clean energy transition.
The new facility builds on the success of Novolyte’s existing Plant 1 at Kulim Hi-Tech Park, which became the first Chinese electrolyte manufacturing operation to achieve order deliveries in Southeast Asia. This expansion represents a key step in Capchem’s internationalization strategy, enabling more agile and customized electrolyte solutions for customers across the region while reinforcing Malaysia’s position in the global battery and clean energy value chain.