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Vingroup unit plans to open battery plants in US and Europe
Machines work on a car at the VinFast manufacturing complex in Hai Phong, northern Vietnam. © Vingroup
LIEN HOANG, Nikkei staff writerAugust 24, 2021 17:35 JST
HO CHI MINH CITY -- Vietnam's Vingroup is betting electric vehicles that can charge in minutes will help win over skeptical drivers as it seeks to enter the U.S. and European markets.
The company's VinFast auto division, which is weighing a public offering in the U.S., said it is working with StoreDot of Israel on "extreme fast-charging batteries" for electric cars. StoreDot says it is the first company in the world to make electric scooter batteries that recharge in five minutes and hopes to bring the technology to full-size cars to eliminate drivers' "range anxiety."
Vingroup, which hired a Tesla veteran and opened branches in five Western countries, is partnering with several battery makers, including Gotion High-Tech, to further its EV ambitions. The Chinese company can produce lithium iron phosphate batteries "without using expensive and rare materials such as cobalt and manganese that are harmful to workers and the environment," Vingroup said.
"We want a convergence of the world's best technologies, combined with the intelligence of the Vietnamese people, in producing the batteries with better technology [and] lower prices," Vingroup Vice Chair Le Thi Thu Thuy said late on Monday.
"VinFast plans to open more rechargeable battery factories in Europe and the U.S. to ensure our own adequate supply," she added.
The company has its work cut out for it. European and North American customers favor Western, Japanese and South Korean cars, which also dominate the Vietnamese market.
But Vingroup said it spies a "perfect opportunity" as more governments in the West move to phase out gas-powered vehicles to slash carbon emissions.
EVs that charge in the same amount of time it takes to fill a gas tank could help win over drivers who are afraid of running out of juice on the road, though such cars are likely still years away. StoreDot's goal is to have a battery by 2025 that goes 100 miles (160.9 km) on a five-minute charge, according to a news article posted on the company's website.
In the meantime, Vingroup will allow customers to lease batteries, which could reduce the upfront price of an EV. Batteries can account for 30% of EV production costs. Vietnam's biggest private conglomerate told Nikkei Asia it targets vehicle sales of 160,000 to 180,000 a year in the U.S.
It is supposed to start taking orders for electric sport utility vehicles in November, with delivery in 2022 in North America and Europe.
Vingroup has been in talks with Foxconn, the iPhone assembler attempting to transform itself into an EV player. In addition, it has signed a deal with another Taiwanese company, ProLogium, to make solid-state batteries.
Its deal with China's Gotion could reduce its need for cobalt and manganese as EV demand drives up metal prices, though Vingroup would still need lithium.
VinFast said in April it was considering whether to tap U.S. equities markets via an initial public offering or special purpose acquisition company, amid a spurt of Southeast Asian businesses discussing mergers with U.S. SPACs.
The company said it has operations in Germany, France, the Netherlands, Canada and California, where it has a permit to test self-driving cars.
asia.nikkei.com
Machines work on a car at the VinFast manufacturing complex in Hai Phong, northern Vietnam. © Vingroup
LIEN HOANG, Nikkei staff writerAugust 24, 2021 17:35 JST
HO CHI MINH CITY -- Vietnam's Vingroup is betting electric vehicles that can charge in minutes will help win over skeptical drivers as it seeks to enter the U.S. and European markets.
The company's VinFast auto division, which is weighing a public offering in the U.S., said it is working with StoreDot of Israel on "extreme fast-charging batteries" for electric cars. StoreDot says it is the first company in the world to make electric scooter batteries that recharge in five minutes and hopes to bring the technology to full-size cars to eliminate drivers' "range anxiety."
Vingroup, which hired a Tesla veteran and opened branches in five Western countries, is partnering with several battery makers, including Gotion High-Tech, to further its EV ambitions. The Chinese company can produce lithium iron phosphate batteries "without using expensive and rare materials such as cobalt and manganese that are harmful to workers and the environment," Vingroup said.
"We want a convergence of the world's best technologies, combined with the intelligence of the Vietnamese people, in producing the batteries with better technology [and] lower prices," Vingroup Vice Chair Le Thi Thu Thuy said late on Monday.
"VinFast plans to open more rechargeable battery factories in Europe and the U.S. to ensure our own adequate supply," she added.
The company has its work cut out for it. European and North American customers favor Western, Japanese and South Korean cars, which also dominate the Vietnamese market.
But Vingroup said it spies a "perfect opportunity" as more governments in the West move to phase out gas-powered vehicles to slash carbon emissions.
EVs that charge in the same amount of time it takes to fill a gas tank could help win over drivers who are afraid of running out of juice on the road, though such cars are likely still years away. StoreDot's goal is to have a battery by 2025 that goes 100 miles (160.9 km) on a five-minute charge, according to a news article posted on the company's website.
In the meantime, Vingroup will allow customers to lease batteries, which could reduce the upfront price of an EV. Batteries can account for 30% of EV production costs. Vietnam's biggest private conglomerate told Nikkei Asia it targets vehicle sales of 160,000 to 180,000 a year in the U.S.
It is supposed to start taking orders for electric sport utility vehicles in November, with delivery in 2022 in North America and Europe.
Vingroup has been in talks with Foxconn, the iPhone assembler attempting to transform itself into an EV player. In addition, it has signed a deal with another Taiwanese company, ProLogium, to make solid-state batteries.
Its deal with China's Gotion could reduce its need for cobalt and manganese as EV demand drives up metal prices, though Vingroup would still need lithium.
VinFast said in April it was considering whether to tap U.S. equities markets via an initial public offering or special purpose acquisition company, amid a spurt of Southeast Asian businesses discussing mergers with U.S. SPACs.
The company said it has operations in Germany, France, the Netherlands, Canada and California, where it has a permit to test self-driving cars.
Vietnam's VinFast eyes fast-charge batteries to boost EV goals
Vingroup unit plans to open battery plants in US and Europe
asia.nikkei.com
