SOUTHEAST ASIA: VIETNAM REPORT
Automaker VinFast is partnering with China’s Gotion High-Tech to research and produce batteries for electric vehicles as part of its vision to become a global brand.
According to a statement released by Vingroup, VinFast’s parent company, the two companies are planning to build Vietnam’s first lithium iron phosphate (LFP) battery plant. LFP is an iron-based battery that does not rely on rare raw materials such as cobalt or nickel. That makes LFP batteries much cheaper, although they have lower energy density than nickel-based chemistries.
According to Vingroup, Gotion is the leading manufacturer of LFP batteries in China, with eight research and development centers worldwide and 10 manufacturing facilities in China. Thai Thi Thanh Hai, vice chairman of Vingroup, said the partnership is key to VinFast’s ability to achieve supply chain autonomy.
VinFast has also partnered with companies in the US, Israel and Taiwan to produce ultra-fast charging batteries with longer range and life.
VinFast is aiming to become a global electric car brand and plans to deliver its first electric car by the end of this year.
Source: VN Express International
PSR Analysis: VINFAST, Vietnam’s domestic car brand, has been mentioned several times in PowerTALK™ News. During my visit to Vietnam several years ago, I also inspected the area around the plant in Haiphong, one of Vietnam’s largest port cities, and found that the plant is located in a very rational location, anticipating the import of parts and export of finished cars.
It reminded me once again of the strength of their ambition to become a global brand. They have just recently released a gasoline-powered car and are growing at an astonishing rate, launching an EV model at the end of this month. They have already opened branches in the US and Canada, France, Germany, and the Netherlands.
How well they will be received in the global market will be a real evaluation that will be solidified over the next few years. Domestically, expectations for VINFAST are very high, and its name recognition is growing. The government is also giving it a boost by subsidizing registration fees and consumption taxes. It will be interesting to see how well the company can appeal to the market with its European design, VINGROUP’s financial strength, and a high-performance battery that does not rely on rare metals. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
