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Access to raw materials is crucial to battery production, which needs to be at an adequate level to enable EV sales growth. Several Southeast Asian countries have substantial reserves of key raw materials, including nickel — the most important metal in lithium-ion EV batteries by mass — and copper.
Increasing the flexibility of car use is crucial to future sales growth as well. Original equipment manufacturers are already offering innovative models — such as fractional ownership, car subscriptions and battery-as-a service — in some markets.
Charging infrastructure is another key area as the availability and ease of use of charging stations is a crucial factor that can help drive demand for EVs. However, there are not enough chargers in Southeast Asian markets to support the projected growth in EV adoption.
In response, Southeast Asian governments are incentivizing the building of more chargers and have set targets for charging network growth as well as accompanying policies, including minimum charge point and interoperability requirements.
Charging also offers a range of potential activities, such as charger manufacturing, installation and field services, asset ownership, and charge point operation. Investors can adopt and adapt these according to risk appetite, capital availability and synergies with existing business models.