Major consumer electronics company Dyson will establish a next-generation battery plant in Singapore, tapping technology from its abandoned electric-vehicle project in a bid to develop new products.

"Our advanced manufacturing expansion in Singapore will enable Dyson to bring entirely new battery technology to market," said CEO Roland Krueger.

The 23,000-sq.-meter plant is being constructed in the Tuas industrial district, in southwest Singapore. Production will begin in 2024, with the plant going into full operation in 2025. The investment amount is the company's largest ever for an advanced manufacturing base, said Dyson.

Details about the next-generation battery are unknown, but the company says it will be smaller, lighter, sustainable and with higher energy density. Dyson has been working on safe, high-capacity all-solid-state batteries for some time, which may be what the new plant will produce.

The foundation for this technology comes from the company's electric vehicle business, which it entered in 2017 before abandoning two years later due to lack of profitability. Development of next-generation batteries, which was conducted in parallel, has continued as a strategic businesses.

The batteries will be used in Dyson's products, reducing the weight and extending the battery life of cordless vacuum cleaners and other appliances. The company also expects to develop other products based on the technology.

"Dyson's next generation battery technology will drive a major revolution in the performance and sustainability of Dyson's machines," said James Dyson, Founder and Chief engineer.

The company posted sales of 6.5 billion pounds ($8.27 billion) in the fiscal year ended December 2022, up 8% on the year, but EBITDA (earnings before interest, taxes, depreciation and amortization) declined 13% to 1.3 billion pounds, impacted by the rising costs of materials and logistics. Profitability is likely to improve with in-house battery production.

The decision to produce next-generation batteries in Singapore is a sign of Dyson's focus on manufacturing and sales in Asia. The company began producing motors in Singapore in 2012 and moved its headquarters there from the U.K. last year. It is expected to supply the batteries to its factories in Malaysia, China and the Philippines.

Singapore has large ports and airports, easing movement and distribution to other parts of Asia. Its well-developed legal system, including protection of intellectual property rights, makes it an attractive base for innovation-focused Dyson.

"Singapore is so pro-business and pro-innovation. It works well with Dyson's long-term investment strategy," John Churchill, Dyson's Chief Technology Officer, told Nikkei. The company's EV factory was also planned for Singapore.

Although the Singaporean government does not disclose the details of its support, it is said to do so from all angles for companies that make strategic investments, including tax incentives, land accommodation and prompt approval.

"Advanced manufacturing continues to be a key focus for Singapore and this investment is a good example of the exciting new opportunities we are keen to pursue with like-minded partners," said Tan Kong Hwee, an Executive Vice President at the government's Economic Development Board.

Dyson gained popularity with its cyclone vacuum cleaners before growing with an expanded lineup including bladeless fans and high-powered hair dryers. However, in recent years it has fallen behind competitors in new product development, such as robotic vacuum cleaners.