Vingroup is building a $174m electric vehicle battery plant in Vietnam

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Vingroup is a Vietnamese car company that produces the company’s VinFast electric car. Vingroup is building this new battery plant to create its batteries for electric vehicles to keep control of its supply chain. VinFast is Vietnam’s domestic car brand that started in 2019 with a gas-powered car.

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When Vingroup completes the project, it could also become a producer of electric vehicle batteries for other manufacturers as well. Companies like Tesla, Ford, GM, Audi, BMW, and others will need a steady supply of batteries once electric vehicles become more mainstream and widespread.

Vingroup is betting on the U.S. market, where its electric SUVs and a battery leasing model are expected to make their debut next year.

The battery plant, Vietnam’s first EV battery project is located in central province of Ha Tinh, on a 8-hectare (20 acre) plot.

In October, the Ha Tinh local authorities said plant was expected to be a $387 million investment and on a 12.6 hectare plot.

“This is in the focus of VinFast’s localisation strategy of supply,” said Thai Thi Thanh Hai, vice chair of Vingroup and vice-chair of the board of VinFast.

“The strategy enables us to own our supply chain of batteries and parts.”

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

It did not elaborate on the project’s time frame in detail but based on the October’s report, the project would run at full capacity from 2025.

Reuters

Supply chains across the globe are strained at the moment, so companies like Vingroup are investing time and money into creating these plants to serve their needs better.

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Last Updated on December 12, 2021.

electric cars and batteries
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