VinFast integrates with Vines Energy for enhanced EV battery tech
In a significant move, VinFast, a subsidiary of Vingroup, is set to merge with Vines Energy Solutions JSC (VinES), another arm of the Vietnamese conglomerate. This development follows the announcement by Vingroup’s Chairman, Pham Nhat Vuong, of his decision to donate 99.8% of VinES shares to VinFast. The merger underscores a strategic initiative to bolster VinFast’s capabilities in battery technology and fortify its production chain, positioning the company as a formidable contender in the global electric vehicle (EV) market.
VinES, valued at USD270 million, specialises in the research, development, and manufacturing of advanced lithium-ion batteries for mobility and energy storage applications. The integration of VinES into VinFast is expected to enhance the latter’s self-sufficiency in battery technology and amplify its research and development efforts in this domain.
Le Thi Thu Thuy, vice chairwoman of Vingroup and Global CEO of VinFast, expressed that the acquisition is a pivotal step towards achieving control over battery technology and supply chain. This move is anticipated to optimise operational costs and enrich the technological content embedded in VinFast’s electric vehicles. The merger is not merely a strategic expansion but is integral to fostering growth, differentiation, and long-term success in a competitive landscape.
Earlier in April 2023, Vuong pledged a personal donation of USD1 billion to VinFast. Additionally, Vingroup and Vuong announced a non-refundable grant of USD500 million and a guaranteed loan of USD1 billion for a maximum of five years to support VinFast’s ambitious global expansion plans.
VinFast, which is based in Hai Phong, Vietnam, launched its IPO in the U.S. on August 15, 2023. The company shifted its legal and financial headquarters to Singapore, as part of VinFast’s global expansion strategy, especially as it prepares to enter the U.S. and other international markets. The company’s shares began trading on the Nasdaq following the completion of its merger with a U.S.-based special purpose acquisition company (SPAC).
VinFast is building its U.S. plant in North Carolina. Specifically, the manufacturing facility is located at the Triangle Innovation Point in Chatham County. This major manufacturing center will cover an area of 800 hectares. The investment in the VinFast plant in North Carolina is substantial. In the project’s first phase, VinFast intends to invest USD2 billion. However, the total planned investment for the entire project is USD4 billion, making it a significant commitment to the development of electric vehicles in the U.S.
​​VinFast is also considering building a plant in Europe. The company is working with a German trade agency to find a location to build electric cars and buses in Germany. VinFast has also established headquarters in Germany, France, and the Netherlands to facilitate its expansion in the European market.
