31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
VinFast and Gotion High-Tech to produce EV batteries in Vietnam
Phi Nhat 17:27, 2021/08/24
The Vietnamese company plans to build its production facilities for battery and charging equipment in the US and Europe, as part of its global expansion strategy.

The Vietnamese automaker VinFast and Gotion High-Tech, a Chinese technology-driven company, will jointly carry out the research & development (R&D), and production of lithium iron phosphate (LFP) batteries in Vietnam.

 An overview of the signing ceremony between VinFast and Gotion High-Tech. Photo: Vingroup

The strategic cooperation came from a Memorandum of Understanding (MOU) signed between two sides on August 23. They focus on the procurement of Gotion LFP batteries and discussion of the possibility to establish a Giga Factory - the first-ever LFP battery cell production plant in Vietnam.

LFP battery is currently the most mainstream battery technology in the global new energy vehicle market, with unique advantages of high safety and long life. LFP batteries can be produced without using expensive and rare materials such as cobalt and manganese that are harmful to workers and the environment. The price of LFP batteries is competitive, which reduces the production cost of electric vehicles, especially small and medium-sized vehicles. 

For VinFast, exploring the local production of LFP batteries in Vietnam is part of the car maker’s efforts to establish a clean energy ecosystem and localize parts supply. 

Thai Thanh Hai, Vice Chairwoman of Vingroup said: “The collaboration with such a prestigious battery manufacturer in the world as Gotion is among VinFast’s essential action plans for developing its smart electric cars and complete supply chains. 

“Our ultimate objective is to establish a clean energy ecosystem, contributing to cutting carbon emissions in Vietnam as well as in VinFast’s global markets,” she added.

Chairman of Gotion High-Tech Zhen Li said the company will definitely use its cutting-edge technology and rich experience in battery manufacturing to fully support VinFast's electrification strategy.

To reinforce its electrification strategy, the Vietnamese automaker has been fostering collaborations with a number of prestigious partners around the world, including those from Israel, Taiwan, the US. 

These ties are aimed at boosting R&D and application of the most advanced battery technologies, such as the solid-state battery, extreme fast charging, new materials, and battery designs. These technologies are expected to allow new batteries with high energy density, longer ranges for electric vehicles (EVs), superior safety, longer lifespan, cost optimization, and eco-friendliness.

VinFast also planned to build its production facilities for battery and charging equipment in the US and Europe, as part of its global expansion strategy. Vingroup, VinFast’s parent company, recently established VinES Energy Solutions JSC focusing on research and manufacture of batteries for electric vehicles.

Gotion High-Tech has founded eight R&D centers in China, the US, Japan, Singapore, Germany, and India.

TAG: Vinfast Vingroup EV electric cars batteries
Other news
05:51, 2022/51/28
Actual FDI to Vietnam rises over 16% to US$15.4 billion in 9-month
Foreign businesses continue to show their confidence in Vietnam’s investment environment.
14:58, 2022/58/21
Construction of road connecting Northwest region kicked off
The project is essential to socio-economic development in the Northwest in general, and Lai Chau in particular.
21:32, 2022/32/16
Vietnam may face increased pressure on inflation control: Experts
Economists on September 16 forecast Vietnam may find it harder to tame inflation in Q4 and 2023.
14:39, 2022/39/09
Moody’s sovereign rating upgrade raises Vietnam’s appeal to foreign investors
A positive rating would put Vietnam in favorable position to attract both direct and indirect investment into the economy.
20:08, 2022/08/29
Vietnam remains attractive for high-quality FDI
Vietnam continues to show its attractiveness to foreign investors, especially with its portfolio of high-quality projects.
14:58, 2022/58/29
Over 600 deals signed at Vietnam Startup Day
This year's event brought together more than 100 pitchings from leading startups from 19 countries on five continents to call for investment.