A subsidiary and energy solutions division of Vingroup, VinES, and battery company Gotion have broken ground on a new 5 GWh battery factory in Vietnam to make “battery supply autonomy” for electric vehicle local production.
The new $275 million (€ 263 million) battery factory is a joint venture (JV) between VinES and Gotion and will supply EV batteries for VinFast.
Measuring 14 hectares (34.5 acres), the factory is anticipated to enter operation by the end of 2023 and is designed to reach an annual production capacity of 5 GWh.
Notably, the new factory will be Vietnam’s first factory to produce lithium iron phosphate (LFP) battery cells when completed.
The new LFP factory will join a 20-acre lithium-ion battery factory that VinES started construction in December 2021 and is expected to start operations next month.
The factory “is an essential component in creating battery supply autonomy for VinFast EVs,” as well as for VinES to grow as an energy solutions company, says VinES CEO, Pham Thuy Linh.
“Located next to the VinES battery pack manufacturing in the Vung Ang Economic Zone, this new factory will complete the closed loop production of LFP Batteries in Vietnam, thereby improving localization for VinFast’s EVs and optimizing production efficiency,” said Linh.
“In addition, the factory will also open up new development opportunities for the Vietnamese EV and clean energy industry.”