Chinese battery firm Gotion invests $150 million in VinFast

August 21, 2023 | 17:38
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Chinese battery manufacturer Gotion Inc. has agreed to acquire 15 million ordinary shares of VinFast through a private issuance valuing the shares at $10 apiece, with an investment totalling $150 million, representing 0.7 per cent of VinFast's total equity.
Chinese battery firm Gotion invests $150 million in VinFast

The completion of this transaction was contingent upon the conclusion of VinFast's merger with Black Spade, which was completed on August 14, and on Gotion obtaining the requisite approval from the relevant regulatory bodies. VinFast's common shares were listed and commenced trading on the Nasdaq stock exchange on August 15.

Gotion is a collaborative partner with VinES Energy Solutions Corporation, a comprehensive energy solutions provider under Vingroup, in a joint venture to manufacture lithium batteries within the Vung Ang Economic Zone in Ha Tinh province, with the project representing a substantial investment of $275 million. The designed production capacity of the plant is 5 GWh per annum.

VinES holds a 49 per cent stake in the venture, while Gotion holds the remaining 51 per cent. The venture's primary objective is to develop and produce rechargeable batteries, predominantly used in electric vehicles (EVs) and energy storage systems.

VinES announced a collaborative product development agreement last April with StoreDot, an Israeli company specialising in ultra-fast charging battery (XFC) technology for EVs.

VinES and StoreDot are collaborating on the research and development of various cell types for these XFCs, preparing for their future production and supply. StoreDot will license and share its ultra-fast charging technology, while VinES will contribute its experience in developing different cell types, oversee production, evaluation, certification, and manage global supply chains.

The first generation of these ultra-fast charging batteries is expected to enter mass production in 2025 and will be immediately applied to VinFast's EVs.

Chinese battery firm Gotion invests $150 million in VinFast

VinFast's previous collaborations with battery manufacturers include a strategic cooperation agreement with ProLogium Technology, a Taiwanese firm specialising in solid-state batteries, in March 2021.

In October 2022, VinFast also signed an MoU with Contemporary Amperex Technology Co. Limited, (CATL) for global strategic collaboration. This collaboration focuses on enhancing the development of EVs, including integrating CATL's Cell to Chassis battery technology.

Gotion, a subsidiary of Hefei Guoxuan High-Tech Power Energy, is a major battery manufacturer in China. The company specialises in designing energy solutions with the aim of innovating and creating the next generation of battery technologies.

Headquartered in Silicon Valley, California, Gotion maintains research and development centres in the US, China, Japan, Singapore, and Europe.

Gotion High Tech is involved in producing battery components, including cathode materials, cell cores, and battery management systems. The company also manufactures lithium-ion batteries.

VinFast targets break-even point in 2024 VinFast targets break-even point in 2024

Amidst the many players entering the electric vehicle (EV) market to take advantage of the green trend, VinFast confidently competes thanks to its production capacity, competitiveness, and diverse product range.

VinFast led a $80 million funding round in Israel-based fast charge EV battery startup StoreDot VinFast led a $80 million funding round in Israel-based fast charge EV battery startup StoreDot

A coalition of international investors, including VinFast of Vingroup, has funded $80 million in StoreDot, an innovative firm that builds fast-charging electric car batteries.

By Luu Huong

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