noco-noco Inc., a decarbonization solutions provider, has announced its intention to acquire 51% of Assemblepoint Co. Ltd., a Japanese electric vehicle (EV) manufacturer, for about $3.6 million. This acquisition, expected to be completed in early 2024, aims to enhance both companies’ contributions to global environmental and transportation challenges. Assemblepoint specializes in electric “Smart Bus” assembly in the Philippines, designed in Japan for quality and precision, while noco-noco offers long-lasting, high temperature-resistant battery technology. This combination is expected to boost revenue growth and earnings for noco-noco in 2024.
The Philippines, committed to reducing emissions by 75% across key sectors by 2023, faces challenges like inadequate charging infrastructure and financing for EVs. noco-noco’s battery technology and Assemblepoint’s rapid assembly approach aim to address these issues and decarbonize transportation. Assemblepoint’s Agile Production Process (APP) allows for efficient design and assembly of EV buses with swappable battery packs, catering to the Philippines’ unique road conditions.
noco-noco’s X-SEPA™ battery technology, tested to extend conventional lithium-ion batteries’ life in high temperatures, is crucial for countries like the Philippines, where summer temperatures can soar. This technology allows for longer battery leasing durations and lower fees, benefiting both the EV buyer and lessor. The company plans to scale up its leasing business and expand into other fast-growing EV markets like Sri Lanka, Kenya, India, and the Middle East. More than six million EVs, including 600,000 electric buses and commercial vehicles, are forecast to be on Philippine roads by 2030. The acquisition starts with deploying 28 units, with an additional vehicle earmarked for Sri Lanka.
Masataka Matsumura, CEO of noco-noco, emphasizes the partnership’s comprehensive nature, combining product strengths and innovative solutions, including swappable batteries and a battery leasing business model. This strategy aims to capture over 10% of the commercial vehicle market in the Philippines by 2030. Takashi Miyashita, CEO of Assemblepoint, highlights the importance of careful planning and cost management in manufacturing. They aim to produce over 2,000 units by 2025, targeting mobility, logistics, and energy industries in developing and less developed markets.
The acquisition’s completion depends on standard conditions, including due diligence, shareholder approval, and regulatory consents. noco-noco focuses on accelerating the transition to a carbon-neutral economy with technologies like X-SEPA™ and IoT-enabled batteries for smart energy optimization. Assemblepoint, established in 2018, has been delivering electric minibuses and minivans in the Philippines, focusing on the ASEAN region’s burgeoning EV market.