VinFast, a member of Vingroup, the largest private corporation in Vietnam, and Vietnam’s leading manufacturer of premium automobiles, has signed a memorandum of understanding (MoU) with Gotion High-Tech Co., Ltd (China) to procure lithium iron phosphate (LFP) batteries and jointly carry out research & development (R&D), as well as the possibility of establishing a giga factory for LFP battery cell production in Vietnam.

LFP battery is currently the mainstream electric vehicle (EV) battery technology available globally. In addition, the price of LFP batteries is competitive, which reduces the production cost of electric vehicles, especially small and medium-sized vehicles. LFP batteries can be produced without using expensive and rare materials such as cobalt and manganese.

Gotion High-Tech is a leading manufacturer of LFP batteries for electric vehicles, energy storage systems, and other applications in China and across the world. The company has also had many years of experience in battery research and development and boasts thousands of patents and licensed technological applications. So far, Gotion High-Tech has eight research and development centers in China, the U.S., Japan, Singapore, Germany and India.

“Gotion High-Tech will definitely use its cutting-edge technology and rich experience in battery manufacturing to fully support VinFast’s electrification strategy,” said Chairman of Gotion High-Tech Zhen Li.

For VinFast, exploring the local production of LFP batteries in Vietnam is part of the car maker’s efforts to establish a clean energy ecosystem and localize parts supply.

“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,” said Thai Thanh Hai, vice chair of Vingroup.

To reinforce its electrification strategy, VinFast has been fostering collaborations with a number of prestigious partners around the world, including those from Israel, Taiwan, the U.S., etc., These ties are aimed at boosting R&D and application of the most advanced battery technologies, such as solid-state battery, extreme fast charging, new materials, new battery designs, etc. These technologies are expected to allow new batteries with high energy density, longer ranges for EVs, superior safety, longer lifespan, cost optimization and eco-friendliness.

In addition, Vingroup has recently established VinES Energy Solutions JSC, which focuses on research and manufacture of batteries for electric vehicles. VinFast also has plans to build production facilities for battery and charging equipment in the U.S. and Europe, as part of its global expansion strategy.

By taking drastic actions, VinFast is gradually realizing the goal of becoming a leading global electric vehicle company and affirms its strong commitments to speeding up the trend of green transportation around the world.