Business

VinFast enters into joint venture with LG Chem to produce battery

By Van Anh April 06, 2019 | 05:17 PM GMT+7

The joint venture expects to provide premium products, thus promoting the support industry in Vietnam.

Representatives of VinFast and LG Chem at the signing ceremony.

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.

US giant backs Vietnam’s bid to lead ASEAN gas trade

US giant backs Vietnam’s bid to lead ASEAN gas trade

Business -  1 week

With strategic deals and strong policy alignment from the Vietnamese government, Excelerate Energy aims to anchor Vietnam’s LNG ambitions in the region.

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Business -  1 week

Scheduled for completion in 2027, the logistics facility will be the first of its kind in Vietnam significantly boosting parcel processing capacity up to 7 million parcels daily.

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Business -  3 week

Gamuda Land will use the loan to invest in a luxury real estate project in Ho Chi Minh City.

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

Business -  3 week

Amid global economic volatility, WHA Group has rapidly rolled out multiple expansion projects in Vietnam, signaling its strategic focus on the country.

Hai Phong Port unveils new deep-water terminals to meet growing trade demand

Hai Phong Port unveils new deep-water terminals to meet growing trade demand

Business -  3 week

Hai Phong Port JSC. has inaugurated international container terminals No. 3 and 4 at Lach Huyen, raising its throughput capacity to 3.5 million TEUs per year.

Hoang Huy Group to raise $79 million for Haiphong property projects

Hoang Huy Group to raise $79 million for Haiphong property projects

Business -  1 month

Hoang Huy expects revenue to exceed VND4 trillion and post-tax profit to reach up to VND2 trillion in fiscal year 2025-2026, targeting annual growth of over 30% for the next five years.