Vietnam’s Kim Long Motor, China’s BYD Battery launch $135 mln EV battery project

Kim Long Motor Hue JSC has partnered with China’s BYD Battery to develop a $135 million electric vehicle battery manufacturing project in central Vietnam.

Kim Long Motor and BYD Battery - a global leader in batteries and new energy vehicles - last Tuesday broke ground on a battery plant in Hue city, with investment to be rolled out in two phases.

The first phase will cover 4.4 hectares and have a designed capacity of 3 gigawatt-hours (GWh) per year, using advanced battery technologies that rank among the most modern in Vietnam and the wider Asian region, the company said.

In the second phase, the project will be expanded to 10 hectares, with additional battery lines for passenger vehicles, lifting total capacity to 6 GWh annually.

Kim Long Motor said it will invest in and operate the new energy battery plant in Vietnam, while BYD will provide comprehensive technology transfer and technical support.

Once operational, the BYD battery plant is expected to help Kim Long Motor raise its localization rate to more than 80% by Q2/2026 and gradually establish a regional hub for electric vehicle and battery manufacturing, the company added.

Deepening ties with Chinese automakers

The battery project comes as Kim Long Motor steps up cooperation with Chinese automotive groups.

In November 2024, Kim Long Motor, Phuong Trang Group and China’s Dongfeng Dana Axle signed a strategic agreement on technology transfer, production lines and exclusive distribution of automotive axle products in Vietnam, covering both internal combustion engines and electric vehicle axles.

Under the deal, Kim Long Motor plans to manufacture up to 80,000 axles per year, equivalent to 40,000 commercial vehicles, with automation rates exceeding 60%. Vehicles under the Kim Long brand equipped with Dongfeng Dana drivetrains are also expected to be exported.

Earlier in 2025, Kim Long Motor and China’s Changan Automobile announced plans to build a passenger car plant in Hue, with an initial capacity of 50,000 vehicles a year. The factory, slated to start construction in 2025, targets an initial localization rate of 40%, rising to over 80% by Q2/2026.

In mid-2025, local authorities approved an increase of VND21.18 trillion ($816.5 million) in investment capital for Kim Long Motor’s integrated automotive and auto parts complex in Hue, bringing total committed investment well above the original $260 million.

Following its capital increase, Kim Long Motor is showing signs of expanding into the real estate sector by registering to undertake a series of projects in Chan May-Lang Co.

In September 2025, Phuong Trang Group and Kim Long Motor jointly proposed two projects: the Chan May Central Administrative and Financial Urban Area and the Lang Co-Lap An Lagoon Urban-Commercial-Service Complex.

Most recently, at the end of December 2025, the Kim Long group of companies, including Kim Long Hue Industrial Park Infrastructure Investment Company Limited and Kim Long Motor Hue JSC, registered to implement the Chan May Industrial Park and Free Trade Zone No. 2 project, covering an area of 267.6 hectares with a total investment of nearly VND2.33 trillion ($89.67 million).

Founded in 2018, Kim Long Motor Hue is based in the Chan May-Lang Co Economic Zone and focuses on automotive manufacturing. As of August 2025, the company had charter capital of VND4.13 trillion ($159 million), chaired by Nguyen Huu Luan.