VinFast Trading – a subsidiary of Vingroup – has entered a joint venture with LG Chem Ltd – an affiliate of South Korean LG Group, to produce batteries that meet international standards.

The establishment of the joint-venture was announced by the two companies at a ceremony in the capital of Ha Noi late last week.

The plant will be located in VinFast’s Supplier Park in the northern port city of Hai Phong. In the initial period, the factory will provide batteries for VinFast’s electric scooters and electric cars.

Covering an area of more than 12,000sq.m, the plant is one of a number of factories producing support-industry spare parts on a large scale at VinFast’s complex. The joint venture aims to produce lithium-ion battery packs for VinFast’s electric scooters that are being made now and electric cars to be produced in the future.

In this venture, VinFast will be responsible for building warehouses and production lines, employing human resources and operating the plant. Meanwhile, LG Chem will provide technical consultancy for the warehouses and equipment, supervise operations, train workers, and transfer technologies and designs.

The establishment of the joint-venture company is one of the important steps to increase the localisation rate in VinFast’s electric vehicles, thus contributing to the development of the support industry in Viet Nam, Vingroup said in a statement.

“The partnership with LG Chem is one of the important steps to ensure that VinFast’s electric scooters and electric cars will use batteries with high usage efficiency at suitable prices,” Vo Quang Hue, deputy general director of Vingroup, said at the ceremony.

“This will also be an important first step in building a complete ecosystem for a made-in-Viet Nam automobile and e-scooter manufacturing industry, which VinFast is aiming for,” he said.

In addition to producing the lithium-ion battery packs for electric cars and scooters, the joint-venture factory plans to supply the lithium-ion battery cells for electric devices and other products belonging to Vingroup’s ecosystem in the future. — VNS