Vietnam’s Vingroup starts construction on a $173.7M EV battery manufacturing factory
(ASEAN Startup) Vietnam conglomerate Vingroup has started the construction of the $173.7 million electric vehicles (EV) battery manufacturing factory in Vietnam.
The VinES Battery Manufacturing Factory which is located in the Vung Ang Economic Zone (Ha Tinh), is being developed on 8 hectares in its initial phase, Vingroup said in a statement.
It said the establishment of this factory represents an important milestone in its EV business VinFast’s strategy of self-production and supply of batteries with global standards for its electric vehicles.
According to the statement, the VinES Battery Manufacturing Factory will provide Lithium batteries for VinFast’s electric cars and buses. The entire infrastructure of the factory, including a casting shop, a welding shop, and a packaging battery pack shop, is designed to produce 100,000 battery packs per year.
It also said phase Two of the factory will expand production to include battery cells manufacturing and upgrade capacity to 1 million battery packs per year.
Vingroup said this very first and most advanced battery plant in Vietnam will be equipped with European and American-standard technologies that boast an astounding workflow automation rate of 80 percent.
It said Vingroup is also working with strategic partners, including the world’s leading companies in pioneering technologies for the production of electric vehicle batteries.
Vingroup Vice President and Chief Executive Officer Nguyen Viet Quang said the research and construction of the battery manufacturing factory in the Vung Ang Economic Zone reflect the group’s efforts to establish a clean energy ecosystem that contributes to the localization of VinFast’s supply.
“Furthermore, we have been promoting collaboration with many prestigious partners around the world, including firms in the US, Israel, Taiwan, China, and more, to research, develop and apply cutting-edge battery technologies such as super-fast charging, 100% solid-state batteries, and highly advanced battery materials,” he said.
According to Vingroup, the construction of the VinES Battery Manufacturing Factory marks a significant step in implementing Vingroup’s “three-pillars” battery strategy, including procuring batteries from the world’s top manufacturers, collaborating with partners to produce the world’s best batteries, and conducting in-house research and development for battery production.
This is a key strategy in VinFast’s goal of becoming a global smart electric vehicle company, it said.
It also said with this, VinFast will be able to provide a wide range of batteries that are suitable for each of its electric vehicle lines, fulfill growing demands in the Vietnamese and global markets.
The importance of this battery factory in VinFast’s global expansion plan is especially significant given its recent introduction of two electric car models, the VF e35 and VF e36 in the US last November, it added.
“This is in the focus of VinFast’s localization strategy of supply. The strategy enables us to own our supply chain of batteries and parts and to keep VinFast at the forefront of battery technology innovation. This, in turn, helps us provide high-quality products at reasonable prices and drive the movement of the global smart electric vehicle revolution,” said Thai Thi Thanh Hai, Vice Chairwoman of Vingroup and Vice-Chair of Board of Members of VinFast.
According to the statement, once operational, the project is expected to attract thousands of domestic and foreign workers and contribute to accelerating industrial production in Ha Tinh Province.
Established in 1993, Vingroup is a private conglomerate in Vietnam with a total capitalization of $35 billion (as of November 4, 2021) from three publicly traded companies. It currently focuses on three main areas: technology, industry, and services.
VinFast – a member of Vingroup – envisioned to drive the movement of the global smart electric vehicle revolution. Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong, Vietnam.
VinFast has announced three electric car models, exceptional battery leasing policies, and industry-leading 10-year warranties. In July 2021, VinFast started expanding to the North American and European markets. Two of its smart electric Sports Utility Vehicle (SUV) models – VF e35 and VF e36 are expected to be available for pre-orders globally in the first half of 2022.
