Vingroup’s VinES Energy Solutions and China-based Gotion High-Tech started construction of their $275 million battery factory in Vietnam on Friday.
The factory is designed to annually produce 30 million lithium iron phosphate (LFP) battery cells. LFP is currently the most mainstream battery technology in the global new energy market, with unique advantages of high safety and long life.
The manufacturing facility’s battery cells will be used for electric vehicles and energy storage systems.
Covering 14 hectares in the central province of Ha Tinh’s Vung Ang Economic Zone, the new factory as a joint venture between the two parties is set to start production in the third quarter of next year, creating about 500 new jobs for local residents.
Vingroup, Vietnam’s largest private conglomerate, said VinES and Gotion would in the later phase expand the project in line with the market's development opportunities and potential.
The factory - the first LFP battery plant in Vietnam - will help meet the battery needs of VinFast, the EV manufacturer of Vingroup.
In December 2021, VinES started constructing a battery manufacturing and packaging factory on eight hectares, also in the same economic zone.
The project, which will cost around $161.2 million to build, will begin operations this December, making Lithium batteries for VinFast’s all-electric cars and buses.