$850 million battery plant proposed for Ho Chi Minh City

$850 million battery plant proposed for Ho Chi Minh City

A consortium has proposed an $850 million investment to build a high-capacity battery plant for power storage in Ho Chi Minh City, aiming to boost Vietnam’s energy tech and green manufacturing capabilities.

Dai Dung Metallic Manufacture Construction and Trade Corporation, acting as the representative of the consortium, has submitted a proposal to Ho Chi Minh City People’s Committee to develop a battery facility for power storage at Saigon Hi-Tech Park based in the city’s District 9.

According to the submitted document, the consortium, referred to as DCH, comprises Dai Dung Corporation, Construction Corporation No.1 (CC1), Hoa Phat Group, and international partners including China Construction Eighth Engineering Division Corp. Ltd. (CCEED) and Smart Tech Group Vietnam (STG VN), a subsidiary of US-based Smart Tech Group Inc.

The partners aim to jointly explore investment opportunities for a battery manufacturing facility.

Saigon Hi-Tech Park in Ho Chi Minh City has captured growing attention from investors

Following feasibility studies, the consortium proposed building a plant to supply battery storage systems for both industrial and residential applications.

The first phase is expected to reach a design capacity of 5GWh, with potential expansion in subsequent phases.

In addition to manufacturing, the facility will also focus on delivering and transferring industrial software solutions, and research and development in battery technologies, robotics, and urban railway engineering.

The proposed location for the project is the Saigon Hi-Tech Park (SHTP) in Ho Chi Minh City, mandating approximately 12 to 15 hectares of land to accommodate the factory, office buildings, warehouses, and an R&D centre.

The project’s total investment is estimated at $850 million, with construction expected to begin in 2026 and reach completion by 2028.

The consortium has stated that it has completed all necessary documentation as per the SHTP's guidelines and secured financial commitments for the project.

In the proposal sent to the city’s management, the consortium expressed a desire to meet the chairman of Ho Chi Minh City People’s Committee to present the project and discuss potential support from the city.

“We firmly believe that with the experience and capabilities of the consortium, coupled with support from both international and domestic partners, this project will be successfully implemented, making a significant contribution to the socioeconomic development of Ho Chi Minh City and Vietnam as a whole,” the document stated.

In late 2024, Smart Tech Group Vietnam submitted a proposal to Ho Chi Minh City, outlining plans for a battery storage project. The proposal highlighted the city as a chosen investment location by virtue of its favourable policies and compelling incentives for the sector.

Under its broader development strategy, Smart Tech Group intends to prioritise battery manufacturing investments in Vietnam’s major cities such as Hanoi, Ho Chi Minh City, and Danang.

The company has been seeking land ranging from 10 to 50 hectares to build a lithium-ion battery factory, producing 4680, 2170, and 18650 cell formats, with a design capacity between 2GWh and 5GWh.

The projected investment would range from $340 million to $850 million, with the timeline tentatively set to begin in 2025.

VIR