VinES Energy Solutions Joint Stock Company, a member of Vingroup, and Gotion Inc., a wholly owned subsidiary of Gotion High-Tech, have started construction of lithium iron phosphate (LFP) battery cell factory in Vietnam.
Vingroup said in a statement the project has a total investment of more than VND 6,329 billion ($275 million), a scale of 14 hectares (34.5 acres) with a design capacity of 5GWh/year, equivalent of approximately 30 million battery cells per year.
The joint venture LFP battery cell factory, funded by VinES and Gotion, is situated in the construction subdivision planning of Central Industrial Park, Vung Ang Economic Zone, Ha Tinh.
The factory’s products are rechargeable LFP battery cells, mainly used for electric vehicle (EV) batteries and energy storage systems (ESS).
With a high level of automation and a cutting-edge, optimized production process, the joint venture LFP battery cell factory will fulfill the needs of VinFast’s EVs that require LFP batteries and ESS products developed by VinES.
In the later phase, VinES and Gotion will research and expand the project according to the market’s development opportunities and potential.
“The LFP battery cell factory is a joint venture with our partner – Gotion. It is an essential component in creating battery supply autonomy for VinFast EVs and VinES’s development goal to become the preeminent energy solutions company,” said Pham Thuy Linh, Chief Executive Officer of VinES.
“Located next to the VinES battery pack manufacturing in the Vung Ang Economic Zone, this new factory will complete the closed loop production of LFP batteries in Vietnam, thereby improving localization for VinFast’s EVs and optimizing production efficiency,
“In addition, the factory will also open up new development opportunities for the Vietnamese EV and clean energy industry,” she added.
Gotion High-Tech Chairman Li Zhen said the VinES Gotion Ha Tinh Battery factory is an integral part of Gotion‘s globalization strategy and the first LFP battery factory in Vietnam.
“I firmly believe that the battery factory will boost the development of Vietnam’s new energy industry with the cooperation of both sides, and jointly contribute to the energy revolution and climate friendliness of human society,
“Vingroup is a highly respected enterprise in the world. We are very honored to cooperate with VinES of Vingroup, to build the factory and contribute to the energy revolution, climate friendly and economic development of Vietnam,” he added.
The facility will be the first LFP battery plant in Vietnam and will begin mass production in the third quarter of 2024 and is expected to create approximately 500 new jobs for the local community.
This is an important part in Vingroup’s “three-prong” battery strategy: (1) buying batteries from the world’s best manufacturers, (2) cooperating with partners to produce the world’s best batteries and (3) In-house battery production research and development.
In December 2021, VinES started constructing a battery manufacturing and packaging factory with a scale of 8 hectares (20 acres) in the first phase, and a total investment of VND 4,000 billion.
After 11 months of construction, the factory is in the final stages of completion and will begin operations in December 2022, producing lithium batteries for VinFast electric vehicles and e-buses.
VinES Energy Solutions specializes in the research and development (R&D) and the manufacturing of advanced batteries for mobility and energy storage applications.
The firm cooperates with many world-leading battery cell manufacturers and is investing in modern battery manufacturing plants in Vietnam.
Gotion High-tech. is a world-leading provider of new energy solutions. It focuses on the R&D, production and sales of EV lithium-ion batteries and ESS batteries.
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