VinES Energy Solutions, a unit of Vietnam’s largest conglomerate Vingroup and China’s Gotion High-Tech, have commenced construction of a $275 million battery factory in the Southeast Asian country, Vingroup said.
The factory in the central province of Ha Tinh will annually produce 30 million lithium iron phosphate (LFP) battery cells.
The cells will be used for electric vehicle batteries and energy storage systems, it said, adding that the factory is scheduled to start production in the third quarter of next year.
The factory will help meet the battery needs of VinFast, an electric vehicle production arm of Vingroup.
VinFast earlier said it struck a deal with U.S. car subscription service Autonomy to supply more than 2,500 units, its largest corporate order to date, as part of a plan to expand further in the market.