Construction of VinES battery manufacturing factory costing VND4 trillion (nearly US$173.7 million) began on Sunday in central Ha Tinh Province's Vung Ang Economic Zone with the presence of President Nguyen Xuan Phuc.

Financed by local conglomerate Vingroup, the factory will be developed on 8ha in its initial phase, providing lithium batteries for VinFast’s electric cars and buses.

A spokesperson for Vingroup said in a statement: "It marks a significant step in implementing Vingroup’s 'three-pillars' battery strategy, including procuring batteries from the world’s top manufacturers, collaborating with partners to produce the world's best batteries, and conducting in-house research and development for battery production.

"This is very first and most advanced battery plant in Viet Nam to be equipped with European and American-standard technologies that boast an astounding workflow automation rate of 80 per cent. Vingroup is also working with strategic partners, including the world’s leading companies in pioneering technologies for the production of electric vehicle batteries."

The entire infrastructure of the factory, including a casting shop, a welding shop, and a packaging (battery pack) shop, is designed to produce 100,000 battery packs per year. The second phase of the factory will expand production to include battery cells manufacturing and upgrade capacity to one million battery packs per year.

During the factory's groundbreaking ceremony, President Phuc spoke highly on Vingroup's operational strategy adjustment, that has shifted from the field of real estate investment and trading to hi-tech and services industries. The timely adjustment also demonstrated Vingroup's significant participation in the process of restructuring and modernising the nation's economy.

The president said the success of Vingroup is gradually becoming an industrial and technological group that would not only create inspiration for other economic groups in Viet Nam but also play an important role in creating the “Make-in-Viet Nam” eco-system on producing, recycling, and reusing renewable energy batteries.

He added that proactively capturing and developing battery technology was a key component to help VinFast quickly realise its strategic goal of becoming a global smart electric vehicle company. Self battery production would ensure the supply of diverse and suitable batteries for each line of VinFast electric vehicles while better meeting the battery needs of the domestic and international electric vehicle market, contributing to the global electric vehicle revolution.

Nguyen Viet Quang, Vice President cum CEO of Vingroup said the construction of this factory reflected his firm's efforts to establish a clean energy ecosystem that contributes to the localisation of VinFast’s supply.

He added: "Furthermore, we have been promoting collaboration with many prestigious partners around the world, including firms in the US, Israel, Taiwan, and mainland China, to research, develop and apply cutting-edge battery technologies such as super-fast charging, 100 per cent solid-state batteries and highly advanced battery materials," he said.

Vo Trong Hai, Chairman of Ha Tinh People's Committee praised Vingroup's important contributions to the provincial socio-economic development in the past. — VNS