The Australian Government, in partnership with the Asian Development Bank (ADB), announced today that it is awarding a Technical Assistance package worth $500,000 to VinES Energy Solutions JSC (VinES). Administered under the Australian Climate Finance Partnership (ACFP), the package is aimed at bolstering the development and sustainable production of lithium-ion battery technology for electric vehicles (EVs) in Vietnam.

This grant forms part of the strategic push by the Australian Department of Foreign Affairs and Trade, the ADB, and the ACFP to assist Vietnam in its transition towards a low-carbon economy. It is anticipated that this initiative will also spur job creation across the battery production supply chain.

VinES is set to conduct a comprehensive study in collaboration with the ADB and the Australian Government. The study’s primary objectives include the development of sustainable and diverse supply chains for battery production in Vietnam, exploration of best practices for the environmentally responsible repurposing and recycling of used EV batteries, and the identification of potential areas for job creation and worker upskilling within the EV supply chain.

VinES CEO, Ms. Pham Thuy Linh, expressed her gratitude for the grant, stating, “We very much appreciate this meaningful support from the Australian Government and ADB. The Technical Assistance reflects our efforts to become a global green energy solutions provider, contributing to Vietnam’s transition to a low-carbon economy.”

Lithium-ion batteries are becoming increasingly crucial for the EV and renewable energy sectors. The forthcoming study promises to generate momentum for the further growth of lithium-ion battery technology, while also spotlighting opportunities for job creation, with a particular focus on gender and disability considerations.

The Technical Assistance package represents a significant affirmation of VinES’s commitment to clean energy and its technical prowess. It is expected to have a positive impact on the sustainable energy sector and low-carbon mobility in Vietnam.

Prior to this, the Australian Government had invested USD 50 million in VinFast, a member of Vingroup like VinES, while the ADB provided USD 950,000 in Technical Assistance to VinFast in June 2022 to promote e-mobility in Vietnam.