The Board of Investments (BOI) is currently undergoing an approval process with the Fiscal Incentives Review Board (FIRB) to fast track the release of guidelines for the ambitious Electric Vehicle Incentive Strategy (EVIS), which may require larger government funding support than the CARS (Comprehensive Automotive Resurgence) program.
BOI Executive Director Ma. Corazon Halili-Dichosa said in a chance interview that the agency is working closely with Finance Secretary Frederick Go, chairman of the FIRB, to fast-track the release of the EVIS guidelines within the first semester.
“All the guidelines should be out by this year, this first semester we’re already out,” she said. “We’re working double-time,” she added, noting that the project is targeted for rollout within President Marcos Jr.’s term.
The Finance Secretary has been consulted to ensure that lessons from the CARS program are not repeated under EVIS. Discussions with the FIRB include determining the appropriate budget for EVIS, which may be sourced from the national budget.
Aside from the Department of Finance, the BOI is also coordinating with the Department of Budget and Management and the Department of Energy.
Halili-Dichosa explained that EVIS requires FIRB approval because, similar to the CARS program, it entails government support in the form of incentives to participants, specifically Fixed Investment Support (FIS) and Production Volume Incentive (PVI). Incentives granted to an EVIS participant will largely depend on its FIS and PVI.
EVIS will cover not only passenger cars but also commercial vehicles and electric public utility vehicles. Participants will span manufacturers, assemblers, and parts makers, including battery producers.
Given its breadth and scope, the EVIS program may require higher government support. “We’re looking at it because the global trend right now is EV. Maybe we should push more for a bigger support for EV,” Halili-Dichosa said.
EVIS must also align with the Comprehensive Roadmap of the EV Industry (CREVI), which targets electric vehicles (EVs) to account for 50 percent of new vehicle registrations by 2040. “To reach that target, we’re looking at how to support it through EVIS,” she said.
Priority
It could be recalled that the BOI has also the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which is intended to serve as a bridge between CARS and EVIS. However, both government and industry stakeholders now recognize the greater urgency of EVIS, which is anchored on the Electric Vehicle Industry Development Act (EVIDA), enacted in 2022.
EVIS has also a broader implications for achieving the government’s target of EVs comprising 50 percent of new vehicle registrations by 2040.
The program is also expected to have a greater impact on the domestic economy, as it involves a wider range of players—manufacturers, assemblers, and parts makers—whereas RACE is limited to manufacturers and assemblers.
Halili-Dichosa declined to identify interested manufacturers and assemblers, stating that their principals should be the ones to announce their plans.
An EV production facility built from scratch could require an investment of up to PHP19 billion. For companies with existing assembly operations that would only need to add a new production line, investment requirements may range from PHP7 billion to PHP8 billion. “It’s a lot of money, actually. So for them to invest, they have to be assured that there’s support,” she said.
“So, we need to release EVIS,” she reiterated.
Battery Sector
Key components in EV manufacturing include the battery, motor, and plastic parts. Currently, there is no local EV battery producer, except for lithium battery assembler StB GIGA, based in Clark. Meanwhile, Sumitomo Metal Mining Co., Ltd. (SMM) operates significant nickel processing facilities in the Philippines, utilizing High-Pressure Acid Leach (HPAL) technology to produce mixed nickel-cobalt sulfide for EV batteries.
However, Sumitomo processes raw battery minerals in Japan. “We’re hoping that when we release EVIS, they’ll be encouraged to do battery production here,” she said.
Beyond lithium-based batteries, Halili-Dichosa noted that new EV battery technologies are emerging.
For instance, Nascent Technologies Corp. is a Filipino startup specializing in sodium-ion battery technology. The company has moved beyond the research and development stage and, with adequate financing, could proceed to commercial battery production for use by local assemblers.
