Vietnamese automotive manufacturer VinFast has started construction of its VinES Battery Manufacturing Factory in the Vung Ang Economic Zone in Vietnam, backed by investment of nearly US$ 175million.

The VinES Battery Manufacturing Factory will produce batteries for VinFast’s electric cars and buses, with phased development working towards a planned output of one million battery packs per year.

Vingroup recently announced it is working with international strategic partners leading including Israel’s StoreDot, Taiwan’s ProLogium, and China’s Gotion High-Tech to “produce the world’s best batteries and conduct in-house research and development for battery production”.

Speaking at the factory ground-breaking ceremony, Nguyen Viet Quang, Vice President & CEO of Vingroup, said, “The research and construction of this battery manufacturing factory reflects our efforts to establish a clean energy ecosystem that contributes to the localisation of VinFast’s supply. Furthermore, we have been promoting collaboration with many prestigious partners around the world to research, develop and apply cutting-edge battery technologies such as super-fast charging, 100% solid-state batteries and highly advanced battery materials.”

Thai Thi Thanh Hai, Vice Chairwoman of Vingroup and Vice-Chair of Board of Members of VinFast, added, “This is in the focus of VinFast’s localisation strategy of supply. The strategy enables us to own our supply chain of batteries and parts and to keep VinFast at the forefront of battery technology innovation. This, in turn, helps us provide high-quality products at reasonable prices and drive the movement of the global smart electric vehicle revolution.”

VinFast last month introduced two electric car models, the VF e35 and VF e36, at the Los Angeles Auto Show.