Trade Secretary Alfredo E. Pascual said the Philippines seeks to create an “end-to-end” value chain from the mining and processing of green metals to the local manufacturing of batteries, charging stations or units, and electric vehicles (EVs).
The trade chief issued the statement during the signing of a lease agreement between Envirotech Vehicles Inc. (EVT) and Berthaphil Inc. on March 28,2023.
“Your investment forms part of the Philippine EV manufacturing ecosystem we are developing. We seek to create an end-to-end value chain from the mining and processing of green metals to the local manufacture of batteries, charging stations or units, and EVs,” Pascual said.
According to the Department of Trade and Industry (DTI), EVT is now entering the Philippines and is geared to set up a manufacturing plant for electric vehicles at the Clark Freeport Zone.
EVT is a US-based transportation industry provider, specializing in all-electric vehicles for commercial and industrial use.
Apart from the global shift to green products, such as electric vehicles, Pascual also emphasized that through the use of EVs, the DTI aims to “aggressively” position the Philippines in the battery segment of the global market.
“Given the presence of abundant nickel and cobalt reserves, the Philippine government is consistently promoting the country as a potential manufacturing hub for battery production,” Pascual said.
Meanwhile, Pascual underscored the “significant role” played by EVT’s investment and expansion in developing and realizing the potentials of the country’s EV industry.
“The growth and development of the EV industry is crucial in making green investments and jobs happen in the Philippines as we aim to generate stable, high-quality, and better-paying jobs for Filipinos, while achieving shared prosperity for all,” Pascual said.
The DTI said anew that several legislations have been passed to develop the local EV industry, such as the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) and the Electric Vehicle Industry Development Act (EVIDA), which will require the government to implement and allocate 5 percent of their fleet to EVs.
Meanwhile, under the EVIDA Act, fiscal and non-fiscal incentives are provided to encourage the purchase and utilization of EVs by Filipino consumers.
Further, DTI said, through Board of Investment (BOI), it shall recommend an EV incentive strategy (EVIS) to the Fiscal Incentives Review Board (FIRB) for approval, similar to the Comprehensive Automotive Resurgence Strategy (CARS) program to ensure the creation of an enabling business environment for the country’s EV industry.
Aside from tax incentives available under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, DTI emphasized another legislation in relation to the importation of EVs, which it said are now duty-free under Executive Order No. 12, Series of 2023.
“The tariff rate of EV passenger cars, buses, minibuses, vans, trucks, kick-scooters, and bicycles are reduced to zero for the next five years,” DTI said, noting that this is “complementary” with DTI’s goal of encouraging EV investments by lowering its importation costs, introducing its “viability” to the public, encouraging shift to less oil-dependent transport options, and “improving the country’s energy security.”