Vietnam VinFast builds 5GWh battery factory

Vietnam Vingroup announced that it will build a 5GWh power battery factory  for its VinFast electric vehicle brand in Ha Tinh Province, with a project investment of US$387 million.

Global electrification is heating up, and OEMs are accelerating their local supply chain layout of power batteries.

Vietnam Vingroup announced that it will build a 5GWh power battery factory for its VinFast electric vehicle brand in Ha Tinh Province, with a project investment of US$387 million (approximately RMB 2.47 billion).

VinFast released three new smart electric SUV models in 2021, and plans to start delivering electric vehicles produced at its Haiphong plant in Vietnam before December.

In order to strengthen the electrification strategy, Vingroup also established a subsidiary VinES Energy Solutions JSC, focusing on the research and manufacturing of electric vehicle batteries, and established cooperative relationships with well-known partners such as Israel, Taiwan, and the United States, aiming to promote the most advanced battery technology The research and development and application of new batteries, such as solid-state batteries, fast charging, new materials, new battery design, etc.

The main purpose of the construction of a battery plant with an annual output of 5GWh is to provide localized electric supply for its electric vehicle production and sales.

It is worth noting that in the choice of battery technology route, VinFast’s local battery manufacturing may take the lead in adopting the LFP technology route.

In August of this year, VinFast and Guoxuan Hi-Tech signed a memorandum of understanding on the development and production of LFP batteries for electric vehicles. The two parties will jointly develop and produce LFP batteries.

In addition, the two parties also discussed the possibility of establishing a battery factory in Vietnam. Vietnam will establish its first LFP battery production plant, and VinFast will also focus on purchasing Guoxuan High-tech’s LFP batteries.

At the same time, VinFast has also reached a cooperation with the Taiwanese battery company Huineng Technology, and plans to establish a joint venture company to develop and produce solid-state batteries.