Vietnamese auto company Vingroup begins work on $ 174 million electric vehicle battery factory



The VinFast LUX A2.0 is seen at t is seen during the first press day of the Paris Auto Show, in Paris, France, on October 2, 2018. REUTERS / Benoit Tessier

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HANOI, Dec.12 (Reuters) – Vietnam’s largest conglomerate Vingroup (VIC.HM) announced on Sunday that it has started building a $ 174 million battery cell factory for its electric vehicle business VinFast so the company can own its battery supply chain.

VinFast became the country’s first fully-fledged domestic automaker when its gasoline-powered models built under its own badge hit the streets in 2019.

He is betting on the US market, where his electric SUVs and a battery leasing model are expected to debut next year.

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The battery factory, Vietnam’s first electric vehicle battery project, is located in central Ha Tinh province, on 8 hectares (20 acres) of land.

In October, local authorities in Ha Tinh said the plant is expected to represent an investment of $ 387 million and be located on 12.6 hectares of land.

“It is central to VinFast’s sourcing localization strategy,” said Thai Thi Thanh Hai, vice president of Vingroup and vice president of the board of directors of VinFast.

“The strategy allows us to own our battery and parts supply chain.”

The company said it plans to produce 100,000 battery packs per year in a first phase and then increase its capacity to one million.

He did not specify the project schedule in detail, but based on the October report, the project would operate at full capacity from 2025.

VinFast works with various partners for batteries including StoreDot, Gotion High-Tech and ProLogium and also focuses on internal R&D and sets up research facilities to develop battery and charging technologies, the company said in a report. press release emailed to Reuters. .

Last week, Vingroup said he was looking to enroll in the United States in the second half of next year. Read more

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Editing by Jane Merriman

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