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
22:22, 2022/22/19
Vietnam and India open new direct flights
The operations of six new air routes will facilitate Vietnamese passengers' travel to places of pilgrimage in India and Indian citizens visiting Vietnam.
18:51, 2022/51/11
More foreign investors land in Vietnam's industrial parks
The reopening of the borders, the government's active support for investors, and the resilience of domestic firms would open up a promising future for the industrial property market in 2022 and subsequent years.
10:49, 2022/49/07
ADB, LDC sign US$100 million loans to support smallholder farmer livelihoods
The loan will support LDC’s operations in India, Indonesia, Pakistan, Thailand, and Vietnam by financing coffee, cotton, and rice inventories for over 50,000 smallholder farmers across these countries.
16:31, 2022/31/04
Vietnam’s selective FDI attraction strategy yields early results
The amount of FDI capital pouring into fields of high environmental risks, obsolete technologies or labor-intensive industries has been on the decline.
20:51, 2022/51/31
FDI in Vietnam rises to 5-year high in Q1
The report added that out of 65 countries and territories investing in Vietnam in the first three months of 2022, Singapore took the lead with $2.29 billion, or 25.7% of the total.
13:21, 2022/21/22
Vietnam - Laos strengthen cooperation in transport infrastructure, energy
Laos remains the largest recipient of Vietnam’s outbound investment capital from a total of 78 countries and territories.