Vietnam vehicle organization Vingroup begins work on $174 mln EV battery plant

Vietnam vehicle organization Vingroup begins work on $174 mln EV battery plant

Vietnam’s greatest combination Vingroup (VIC.HM) said on Sunday it had begun building a $174 million battery cell plant for its VinFast electric vehicles business so the organization can possess its battery supply chain.

VinFast became the nation’s first completely fledged homegrown car manufacturer when its gasoline-powered models worked under its own identification hit the roads in 2019.

It is wagering on the U.S. market, where its electric SUVs and a battery renting model are relied upon to make their debut next year.

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

In October, the Ha Tinh local authorities said plant was relied upon 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 organization said it is hoping to produce 100,000 battery packs each year in a first stage and afterward update its ability to 1,000,000.

It didn’t elaborate on the venture’s time period exhaustively however in light of the October’s report, the project would run at full capacity from 2025.

VinFast is working with a variety of partners for batteries, including StoreDot, Gotion High-Tech and ProLogium and is additionally focusing on internal R&D and is building up research facilities to develop battery and charging technologies, the organization has recently said in a emailed statement.

Last week, Vingroup said it was hoping to list in the United States in the second half of next year.