South Korea’s LG Chem has set up a joint venture with Vietnam’s VinFast, an automobile subsidiary of Vietnam’s largest privately-run conglomerate Vingroup, for battery pack production, Reuters reported.
Overview of the signing ceremony. Source: VinFast.
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Korea's leading EV battery maker said VinFast will be in charge of building warehouses and production lines, employing workers and operating the plant, while LG Chem will be responsible for supervising facilities and equipment, educating employees and offering technical advice and design knowhow.
The plan comes as VinFast aims to become the country’s first domestic car manufacturer and targets to produce 250,000 cars per year.
Meanwhile, LG Chem plans to boost its presence in Southeast Asian market through partnering with VinFast.
Vingroup has earmarked US$3.5 billion for its overall car manufacturing project.
Part of the joint-venture plans include supplying lithium-ion battery cells for electric devices and other products belonging to Vingroup, the statement added.
Vo Quang Hue, deputy general director of Vingroup, said the joint venture factory is an important step to ensure VinFast’s electric scooters and electric cars will have batteries with high efficiency at suitable prices.
This would be the beginning of building a complete ecosystem for a made-in-Vietnam automobile and e-scooter manufacturing industry, Hue added at the announcement ceremony.
