HCMC – Vietnamese automaker VinFast, a subsidiary of Vingroup, signed a memorandum of understanding with China’s Gotion High-Tech Co., Ltd, a leading firm in clean energy in the world, to research and develop lithium iron phosphate (LFP) batteries for electric vehicles (EV).
The two firms will build the first LFP battery plant in Vietnam, according to a statement by Vingroup.
LFP is the most common long-life battery for EVs worldwide with its safety and independence on scarce raw materials, such as cobalt or manganese. LFP is also cheaper, helping to reduce EV prices and is appropriate for small cars.
Gotion High-Tech owns thousands of patents and licensed technological apps. It has established eight research and development centers in China, the United States, Japan, Singapore, Germany and India.
Gotion High-Tech chairman Zhen Li said the company would use leading technologies and experiences in battery production to support VinFast.
Thai Thi Thanh Hai, deputy chairwoman of Vingroup, said the development of an LFP battery plant in Vietnam was aimed at establishing a clean energy ecosystem, contributing to the supply localization.
The cooperation with Gotion High-Tech is an important plan of VinFast to develop smart EVs and achieve autonomy in its supply chain.
VinFast wants to establish clean energy ecosystems and reduce CO2 emissions in Vietnam and other markets where it is operating, Hai added.
Besides Gotion Hi-Tech, VinFast has cooperated with many other prestigious partners in the United States, Israel and Taiwan to research and develop superfast charging batteries and solid batteries with new materials and designs to improve their safety and lifespan and reduce their costs.
Vingroup also established VinES Energy Solution JSC to produce EV batteries. VinFast has also worked on plans to produce batteries in the United States and Europe.