VinFast forges partnerships to make Vietnam its ASEAN EV hub

VinFast, Vietnam's first volume car manufacturer is seemingly casting its web and growing its global supply chain larger by the day.

By forging three new partnerships in the area of battery technology, it is poised to make itself and by extension, Vietnam the leading EV hub within the ASEAN trade bloc.

As of now, VinFast has inked agreements with three different companies to build competencies in the areas of battery development and manufacturing. These three include:

• Prologium: Taiwanese battery cell manufacturer specialising in solid-state batteries. Solid-state batteries are cheaper and longer lasting that lithium-ion batteries.
• Gotion High Tech: Chinese-based producer of LiFePO (lithium iron phosphate) or LFP batteries. LFP batteries are a cheaper alternative to conventional lithium-ion batteries because it relies less on cobalt, which is increasingly expensive.
• Storedot: Israeli start-up currently developing fast-charging batteries that can recharge a 65 kW battery from 0 to 80 percent in approximately 5 minutes. Storedot batteries use semiconductor nanoparticles in the electrodes instead of graphite that allows faster charging.

Also read: Outgrowing Malaysia, Vietnam's VinFast will launch EV models in US and Europe next year

According to reports, these new collaborations are aimed at growing VinFast's global EV supply chain – as it intends to move into developed markets such as the US and Europe – and giving the company a competitive edge in the global EV race.

While VinFast’s tie-up with Gotion High Tech (who are also partnered with Volkswagen) for the supply of batteries can be seen as more short term, its collaborations with Prologium and Storedot are likely more long term in nature.

VinFast reportedly hopes to produce batteries instead of purchasing them from other producers.

Also read: How many years before Vietnam overtakes Malaysia’s car industry? About 10

Although, with details sparse and these strategic collaborations still in their infancy, there is much to go in terms of formalising actual productive ventures.

However, if these strategic partnerships do end up with VinFast becoming a regional partner for the development and production of EV technology and batteries, it could well mean Vietnam could become a major EV industry player within the ASEAN region.

Furthermore, with Thailand announcing its very own robust EV industry roadmap which is divided into three phases (stretching between now and 2030); one must ask where Malaysia fits in within this equation in the years to come.