VINFAST AND LG CHEM TO ESTABLISH A BATTERY MANUFACTURING JOINT VENTURE
Sat, 04/06/2019 - 05:21
On April 05, 2019, VinFast Manufacturing and Trading LLC (a subsidiary of Vingroup) and LG Chem (a subsidiary of LG Group) announced the establishment of their battery manufacturing and packaging joint venture for produce batteries meeting international standards. Located in the supplier park of VinFast’s car and electric scooter production complex (Cat Hai, Hai Phong), the factory’s initial mission is to accommodate the demand of VinFast’s electric vehicle lines.
Covering an area of over 12,000 square meters, the lithium-ion battery manufacturing joint venture of LG Chem and VinFast is one of the largest auxiliary factories in the production complex. The objective of the joint venture is to produce lithium-ion batteries for VinFast’s current models of electric motorcycles and future electric cars.
According to the partnership agreement, VinFast is responsible for the construction of the factory and production lines, recruitment, and plant operations. LG Chem will provide consultancies on the engineering and equipment of the factory, monitor the implementation, train employees, and transfer technologies and designs.
LG Chem is currently the holder of various world-leading battery technologies. The establishment of the battery manufacturing joint venture with LG Chem is an important step to increase the localization rates in VinFast’s electric automobile and motorcycle lines, contributing to the development of the support industry of Vietnam.
Products made by VinFast - LG Chem joint venture will strive for high quality, international standards, and environmental friendliness. LG Chem’s long experience in the field of lithium-ion battery manufacturing can ensure that VinFast’s battery electric vehicles reach the optimal efficiency at reasonable prices for the Vietnam market.
In the speech at the announcement ceremony of the joint venture, Mr. Vo Quang Hue - Deputy General Director of Vingroup said: "The partnership with LG Chem to establish a battery production joint venture right in VinFast’s automobile and electric scooter manufacturing complex is an important step to ensure that the current and future electric vehicles of VinFast will have high-performance batteries at reasonable prices. This is also one of the vital initial steps in creating a comprehensive and synchronous system for the made-in-Vietnam electric motorcycle and automobile industry that VinFast is aiming for."
Besides batteries for electric automobiles and scooters, the joint venture will also work to provide batteries for other electronic equipment and products in the Vingroup ecosystem in the future.
About LG Chem:
Established in 1947, LG Chem currently has more than 34,000 employees worldwide, operating in 4 major business areas: Petrochemicals, Energy Solutions, Advanced Materials, and Life Sciences. The company has a diversified portfolio of chemical products, from petrochemicals to high value-added plastic materials. LG Chem has also expanded its business to the hi-tech fields of lithium-ion batteries, advanced materials, and pharmaceuticals and vaccines. With over 20 years of experience in developing and manufacturing batteries, LG Chem has become one of the world-leading manufacturers of lithium-ion batteries, establishing partnerships with various mobile phones, electric vehicles, and hybrid vehicles manufacturers, etc.
VinFast, founded in 2017, is a subsidiary of Vingroup - the largest private enterprise in Vietnam. The company is currently operating in the industry of automotive and electric scooter manufacturing at its factory in Cat Hai - Hai Phong. On November 03, 2018, VinFast launched its first electric scooter model, VinFast Klara, with a lithium battery version and a lead-acid battery version. On Mach 06, 2019, VinFast completed the trial production of its first Lux SA2.0 cars and sent a series of vehicles overseas for testing. VinFast plans to start rolling out its automobiles in Quarter II and Quarter III of 2019.