Automotive manufacturer VinFast and Gotion High-tech Co., Ltd. (China), a leading clean energy group, signed an MoU on the procurement of Gotion lithium iron phosphate (LFP) batteries. The two parties will also discuss the possibility to establishing an LFP battery factory in Vietnam.
|VinFast vehicles will run on Gotion LFP batteries and the two sides may deploy a factory in Vietnam |
Once completed, this will be the first-ever LFP battery cell production facility in Vietnam.
LFP is currently the mainstream battery technology in the global electric vehicle market, offering high safety and long life while also producible without expensive and rare materials such as cobalt or manganese. This makes LFP less harmful to workers and the environment while also making batteries (and the resulting vehicles) more affordable.
Zhen Li, chairman of Gotion High-tech said that “Gotion High-Tech will definitely use its cutting-edge technology and rich experience in battery manufacturing to fully support VinFast's electrification strategy. VinFast electric models equipped with Gotion batteries must also be popular among consumers. Let us work together to advance the development of the new energy industry and accelerate the realisation of the goal of 'carbon neutrality' between China and Vietnam and the world.”
The plans to develop Vietnam's first LFP battery factory is part of VinFast's efforts to establish a clean energy ecosystem and localise parts supply, the company said in a press release.
Thai Thi Thanh Hai, vice chairwoman of Vingroup said, “The collaboration with such a prestigious battery manufacturer in the world as Gotion is among VinFast’s essential action plans for developing its smart electric cars and complete supply chains. Our ultimate objective is to establish a clean energy ecosystem, contributing to cutting carbon emissions in Vietnam as well as in VinFast’s global markets."
VinFast's e34 electric car became one of the most popular four-wheelers in the Vietnamese market, with as many as 4,000 orders placed within the first 12 hours of its launch. Within three months (as of the end of July), a total of 25,000 units have been ordered, setting a new record for the Vietnamese automotive sector.
In order to reinforce its electrification strategy, VinFast has been boosting research and development via collaboration with prestigious international partners from Israel, Taiwan, and the US. The company is looking to develop the most advanced technologies with the expectation to create new batteries of high energy density, longer lifespan, optimal cost, and little to no environmental impact.
In addition, Vingroup has recently established VinES Energy Solutions JSC focusing on the research and manufacturing of batteries for electric vehicles. VinFast also plans to build production facilities for battery and charging equipment in the US and Europe as part of its global expansion strategy.