Two Chinese energy storage systems and battery manufacturers are currently considering significant investments worth hundreds of millions of US dollars in Viet Nam, according to a Reuters report.

The total value of these investments is expected to surpass US$1 billion.

Xiamen Hithium Energy Storage Technology is a start-up that produces stationary energy storage products, such as battery cells and larger storage units, to help manage the erratic energy supply from solar or wind farms.

It is expanding in Europe and the US and has approached Viet Nam's industrial managers to discuss the $900 million investment to build a plant on more than 30 hectares of industrial land.

If the investment is finalised, this would be one of the largest foreign investments in Viet Nam.

According to another source, the investment under consideration would be worth at least $500 million. The sources are not authourised to speak to the media and declined to be identified.

In a statement to Reuters, Hithium said that no new contracts are close to being finalised. It also shared a plan to increase its capacity from 15 to 70 Gigawatts (GW) by the end of this year.

Another Chinese company, Growatt New Energy, which currently leases a prefabricated plant in Viet Nam, is contemplating a $300 million investment to acquire approximately 15 hectares of industrial land for the construction of a new factory.

Both companies are working with multiple authorities and industrial parks about potential locations for their plants, the sources said.

The flourishing economy, grappling with frequent power shortages caused by escalating demand, climate change and an inadequate power grid, has made Viet Nam a promising market for renewable energy. — VNS