KMP Strengthens Malaysia’s Battery Recycling Industry to Drive Green Technology Growth
KUALA LUMPUR, Feb 1, 2026 — Malaysia has taken another major step towards becoming a regional leader in green technology following a strategic investment by Kumpulan Modal Perdana in the hydrometallurgical facility operated by Econili.
The investment enables the domestic processing of critical minerals such as lithium, cobalt and nickel, reducing the country’s dependence on imported raw materials and strengthening its electric vehicle supply chain.
KMP Chief Executive Officer Yarham Yunus said the initiative represents a long-term strategic commitment to building a sustainable high-tech ecosystem.
He noted that Malaysia must maximise the value of used batteries rather than treating them as waste, especially as demand for EVs and energy storage systems continues to grow.
Recovered materials from recycled batteries will be reintegrated into Battery Energy Storage Systems, helping to stabilise renewable energy grids and improve energy security.
Econili’s facility, capable of processing up to 24,000 tonnes of used batteries annually, uses environmentally friendly hydrometallurgical technology that minimises emissions and pollution risks.
Econili CEO Jayden Goh said the technology supports national sustainability goals while complying with strict ESG standards.
Beyond environmental benefits, the project is expected to generate high-skilled employment opportunities and strengthen Malaysia’s position in the regional green economy.
The collaboration also aligns with national industrial and energy transition policies aimed at achieving net-zero emissions.
With continued public-private cooperation, Malaysia is poised to become a leading hub for battery recycling and clean energy innovation in Southeast Asia.
-wilayah.com.my
