Vietnamese conglomerate Vingroup and the People's Committee of Ha Tinh Province have started construction of a $174 million battery factory. The company's VinES Battery Manufacturing Factory is being built in the Vung Ang Economic Zone in Ha Tinh.
The battery manufacturing facility is being constructed on an 8-hectare property. The opening of this plant is a significant step forward in the company's objective of self-production and worldwide supply of batteries for its electric vehicles.
The new factory will reportedly be used to mainly manufacture lithium batteries for VinFast's electric cars and buses. The factory is, reportedly, designed to produce 100,000 battery packs per year. It will include a casting shop, a welding shop, and a battery packaging shop. Phase two of the plant will increase capacity to 1 million battery packs per year and expand production to include battery cell manufacturing.
Once operational, the factory is projected to attract thousands of local and international employees, as well as contribute to the province of Ha Tinh's increased industrial production. The company did not elaborate on the construction's timeline and only said that it plans to run it at full capacity by 2025.
VinFast is developing battery and charging solutions with a range of partners, including StoreDot, Gotion High-Tech, and ProLogium. The company said it would also be focusing on establishing internal research and development centers.
Vingroup's CEO, Nguyen Viet Quan, said during the factory's groundbreaking ceremony that the new facility reflects the company's goal of establishing a "clean energy ecosystem" and working with international partners to develop and apply cutting-edge battery technologies.
The factory is part of the company's "three pillars" battery strategy, which includes buying batteries from top manufacturers, collaborating with international partners to produce the best batteries, and conducting in-house research and development for new battery technologies.
This will be Vietnam's first and most modern battery facility, combining European and American-standard technology and an impressive 80% process automation rate. Vingroup also collaborates with key partners, including some of the world's most innovative firms in the field of electric car battery manufacturing.
Vingroup's automotive subsidiary, VinFast, is Vietnam's first local automobile manufacturer. The company is planning to make substantial investments in the U.S. market, where its electric SUVs and a battery leasing vehicle are anticipated to launch next year. The company previously said it is also looking to list in the U.S. sometime during the second half of next year.
