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Integrated Micro-Electronics, Inc. and US-based Zero Motorcycles signed a partnership agreement to manufacture electric motorcycles in the Philippines
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Zero Motorcycles has agreed to subcontract its manufacturing operations vis-a-vis electric motorcycle assembly and other related sub-assemblies, such as battery and motor assembly, to IMI
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The agreement projects an annual revenue of US$65 million and investments of $250 million over the next five years
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The e-vehicles will be made available by 2024 with mass production eyed by June 2023
Integrated Micro-Electronics, Inc. (IMI) and US-based Zero Motorcycles have signed a partnership agreement to manufacture electric motorcycles in the Philippines.
The deal was signed on May 1 during President Ferdinand Marcos, Jr.’s official visit to the US.
Under the partnership, Zero Motorcycles, a global leader in electric motorcycles and powertrains, will set up the first electronic vehicle (EV) motorcycle manufacturing site in Laguna, Malacañang said in a statement.
The facility will be provided by IMI, which is headquartered in Biñan, Laguna. This facility operates as an original equipment manufacturer in diversified sectors that include automotive, industrial, medical, telecommunications infrastructure, storage devices, and consumer electronics.
Zero Motorcycles will subcontract its manufacturing operations, specifically electric motorcycle assembly and other related sub-assemblies, such as battery and motor assembly, to IMI.
The electric motorcycles will be headed for Zero’s Europe, Asia, and other markets.
Zero Motorcycles and IMI have agreed on a preliminary timetable with the goal of starting mass production by June 2023.
ZERO’s electric motorcycles will be made available in 2024 through AC Industrial Technology Holdings Inc. (AC Industrials), Ayala Corp.’s (AC) holding company for its current and future investments in industrial technology. IMI is AC Industrials’ manufacturing arm.
The agreement projects an annual revenue of US$65 million and investments of $250 million over the next five years.
The venture is expected to generate at least 200 new jobs for Filipinos in high-end and high-performance motorcycle manufacturing.
As one of the proponents of the country’s transition to EV and the use of green technology, Trade Secretary Alfredo Pascual said: “We thank Zero Motorcycles for their trust. This is considered a historic agreement because it is a pioneering activity involving high-end electric batteries, motors and motorcycle assembly. With this investment, we will be better positioned as an export manufacturing hub for electric batteries and vehicles in the region. This partnership between IMI and Zero Motors is a testament to the expertise and capabilities of our local manufacturing sector.”
With the enactment of the Electric Vehicle Industry Development Act, the government, through the Board of Investments, aims to narrow the cost gap between traditional vehicles and EVs to increase market demand. Further, the law provides for the creation of the Electric Vehicle Incentive Strategy that will provide more incentives for EV-related investments to help establish an enabling environment for the said sector.
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