KUALA LUMPUR (May 2): JAKS Resources Bhd's unit has signed a memorandum of understanding (MOU) with China-based CALB Group Co Ltd to explore opportunities in the battery energy storage system (BESS) market, with a particular focus on the Southeast Asia region.

In its filing with Bursa Malaysia, JAKS said its wholly-owned subsidiary, JAKS Solar Power Holdings Sdn Bhd has entered into an MOU with CALB on Thursday for the proposed collaboration.

JAKS, which specialises in construction and power utilities, said on Thursday that the MOU is a non-binding agreement and will not have any financial implications until a definitive agreement is signed, which is expected to occur within six months from the date of the MOU.

Under the MOU, JAKS Solar and CALB will jointly explore the Southeast Asian BESS market, including regions such as Indonesia, Singapore, Thailand, and Vietnam. JAKS Solar will act as the distributor of CALB products within these regions.

The MoU also outlines plans to establish a joint venture aimed at producing and integrating battery modules or packs using CALB battery cells.

According to the group, CALB is primarily involved in the development, design, and manufacturing of lithium-ion batteries for electric vehicles and energy storage system (ESS) applications, including key materials, battery cells, battery management systems, and other related systems.

JAKS chief executive officer Andy Ang Lam Poah said the collaboration will enable the group to tap into more renewable energy (RE) related opportunities. This is especially relevant when export opportunities align with the Malaysian government’s initiative to facilitate cross-border RE exports.

“Batteries play an important role as the world transitions to RE sources, smoothing out fluctuations in RE production. With the increasing demand for batteries propelled by the rapid adoption of RE, we are optimistic that this collaboration will yield a positive output in the future,” said Ang.

At market close on Thursday, shares in JAKS settled half a sen or 3.7% lower at 13 sen, valuing the company at RM308.08 million