VinFast to build battery factory in US
- VinFast plans to set up a battery factory in the US
- The Vietnamese car company is going to focus fully on electric vehicles in 2022
- It’s also the first car company in the world to use blockchain for car reservations
VinFast has been making headlines around the world in the last few months for the right reasons. The Vietnamese carmaker recently confirmed its plans to bring a pair of its electric SUVs to the American market during its debut at the 2021 Los Angeles auto show.
Now, Vinfast is planning to set up a battery factory in the US as well as part of its planned US manufacturing complex. The company hopes to build electric vehicle battery cells and packs. Vinfast has previously said it planned to start producing electric vehicles in the United States in the second half of 2024.
Speaking to Reuters, Le Thi Thu Thuy, Vingroup vice-chair and VinFast Global CEO said the new plant will be a Gigafactory. While the company will continue to source batteries from its suppliers, as it will initially assemble battery packs with cells sourced from its supplier at its U.S. complex before starting its own production.
“We have narrowed down from I think, over 50 sites to about three sites,” she said during her U.S. visit to attend the CES 2022 in Las Vegas.
Reuters also reported her saying that the mega-site will also include an electric bus factory. In December, Vingroup has already started construction on a battery cell plant in Vietnam as part of its plan to build its own battery supply chain.
We’re thrilled to introduce our newest range of all-electric vehicles. Each one is designed to make the switch to EV an easy and exciting experience. Explore the benefits of going #EV with VinFast. See disclaimers in reply. https://t.co/OKXqiPe19u #VinFirst #CES2022 pic.twitter.com/heqy92X4EG
— VinFast (@VinFastofficial) January 6, 2022
In fact, battery supply chain issues have already led to delays in the production of several electric vehicle brands around the world. Some of these companies have now chosen to also build their own battery factories to deal with the shortage.
Vinfast is looking to initially produce 100,000 battery packs per year with US$ 174 million of investments and then upgrade its capacity to one million. As Vietnam’s first fully-fledged domestic car manufacturer, Vinfast is also considered the most advanced car manufacturer in the ASEAN region, designing and building better models than other ASEAN car manufacturers.
Having only hit the streets in 2019, the carmaker began selling electric vehicles in Vietnam at the end of 2021. At CES 2022, Thuy also announced that VinFast will be a fully electric vehicle company in 2022. With the new announcement, Vinfast hopes it will be able to cater to the growingly competitive electric vehicle market in the US.
Apart from its new battery factory announcement, the car company also announced that it will commence a reservation program for its first two electric vehicle models through blockchain. Blockchain will be used in the process to certify reservations, payments, and eventually vehicle ownership.
Vinfast’s application of blockchain makes it one of the world’s first automakers to put this advanced technology into use. It will first apply blockchain in the reservation process in the US and is looking at the possibilities of using this technology in other markets in the near future.
“VinFast’s Customer-First Philosophy leads us towards providing high-quality products with reasonable pricing and outstanding services as well as offering solutions that inspire global customers to join hands for a more sustainable future for all,” added Thuy.