VinFast enters into joint venture with LG Chem to produce battery

VinFast Trading and Production Ltd, a subsidiary of Vingroup, and LG Chem Ltd, a subsidiary of South Korean LG Group, has announced the establishment of their joint venture for battery pack production following international standards.

In the initial period, the joint venture aims to produce lithium-ion battery packs for VinFast’s electric scooters, then electric cars in the future.

The plant is located in VinFast’s Supplier Park in the northern port city of Haiphong. Covering an area of more than 1.2 hectares, it is one of the factories that produce support-industry spare parts on a large scale at VinFast’s complex.

In this venture, VinFast is responsible for building warehouses and production lines, employing human resources and operating the plant.

LG Chem will provide technical consultancy for the warehouses and equipment, supervise operations, train workers, and transfer technologies and designs. Currently, LG Chem holds various world-leading battery technologies.

With the experience of LG Chem in battery production, VinFast’s battery-powered vehicles will be optimally guaranteed regarding usage efficiency at suitable prices.

The joint venture is an important step to increase the localisation rate of VinFast’s electric vehicles with premium products that meet international standards and environmental criteria, thus promoting the support industry in Vietnam.

At the ceremony, Vingroup's deputy general director Vo Quang Hue revealed that the partnership with LG Chem will be the start of a complete ecosystem for a made-in-Vietnam automobile and e-scooter manufacturing industry, which is the long-term goal of VinFast.

Apart from battery production, the joint-venture factory plans to supply the lithium-ion battery cells for electric devices and other products of Vingroup’s ecosystem in the future.

Established in 2017, VinFast is developing a wide range of electric cars and electric scooters, headquartered in the northern port city of Haiphong. Late last year, VinFast introduced its first electric scooter named Klara with a version using a lithium-ion battery and another using a lead battery.

On March 6, 2019, VinFast completed the pilot manufacturing of its first car, Lux SA2.0, and shipped to foreign countries for quality and safety tests. The car is expected to be available for sale by the second or third quarter of 2019.