VinFast LLC and China's Gotion High-Tech Co Ltd signed a Memorandum of Understanding (MoU), focusing on the procurement of Gotion LFP batteries and discussion of the possibility to establish a Giga Factory - the first-ever LFP battery cell production facility in Viet Nam.

According to the agreement, VinFast and Gotion High-Tech will jointly carry out the R&D and production of lithium iron phosphate (LFP) batteries.

LFP battery is currently the most mainstream battery technology in the global new energy vehicle market, with unique advantages of high safety and long life.

LFP batteries can be produced without using expensive and rare materials such as cobalt and manganese that are harmful to workers and the environment. In addition, the price of LFP batteries is competitive, which reduces the production cost of electric vehicles, especially small and medium-sized vehicles.

Gotion High-Tech is a leading manufacturer of LFP batteries for electric vehicles, energy storage systems, and other applications in China and across the world. So far, Gotion High-Tech has founded eight R&D centres in China, the US, Japan, Singapore, Germany and India.

For VinFast, exploring the local production of LFP batteries in Viet Nam is part of the car maker’s efforts to establish a clean energy ecosystem and localise parts supply. — VNS