LG Chem and VinFast Trading and Production Ltd. of Vietnam have agreed to set up a joint-venture company for battery pack production in Vietnam. VinFast is a subsidiary of Vingroup.
The plant is located in VinFast’s Supplier Park in the northern port city of Hai Phong, VinFast said in a press release on April 7. In the initial period, the factory will provide batteries for VinFast’s electric scooters and electric cars.
Covering an area of more than 12,000 square metres, the plant is one of a number of factories producing support-industry spare parts on a large scale at VinFast’s complex.
The joint venture aims to produce lithium-ion battery packs for VinFast’s electric scooters that are being made now and electric cars to be produced in the future.
VinFast will be responsible for building warehouses and production lines, employing human resources and operating the plant. LG Chem will provide technical consultancy for the warehouses and equipment, supervise operations, train workers, and transfer technologies and designs.
Currently, LG Chem holds many world-leading battery technologies. The establishment of the joint-venture company is one of the important steps to increase the localization rate in VinFast’s electric vehicles, thus contributing to the development of the support industry in Vietnam.
The joint-venture company aims to provide premium products that meet international standards and environmental criteria. With the long-term experience of LG Chem in the field of lithium-ion battery production, VinFast’s battery-powered electric vehicles will be optimally guaranteed in terms of usage efficiency and prices suitable to the Vietnamese market.
In a speech delivered at the announcement ceremony, Vo Quang Hue, deputy general director of Vingroup, said: “The partnership with LG Chem is one of the important steps to ensure that VinFast’s electric scooters and electric cars will use batteries with high usage efficiency at suitable prices. This will also be an important beginning step in building a complete ecosystem for a made-in-Vietnam automobile and e-scooter manufacturing industry, which VinFast is aiming for.”
In addition to producing the lithium-ion battery packs for electric cars and scooters, the joint-venture factory plans to supply the lithium-ion battery cells for electric devices and other products belonging to Vingroup’s ecosystem in the future.