Kim Long Motor inks battery supply deal with LG Energy Solution

Kim Long Motor inks battery supply deal with LG Energy Solution

Kim Long Motor Hue JSC and LG Energy Solution, the world's leading battery company, signed an MoU on for supply of battery cells on August 28.

LG Energy Solution will supply cylindrical battery cells, while Kim Long Motor will produce and assemble the complete battery packs.

This is an important strategic step, marking the comprehensive partnership between the world's leading energy group and a Vietnam-based automobile manufacturing and assembly company. This is a vital factor in shaping and developing high-quality 'Make-in-Vietnam' EVs in the future.

Kim Long Motoris also constructing a modern battery pack manufacturing and assembly factory in Hue, scheduled to begin operations early 2026. Covering an area of ​​nine hectares in Kim Long Motor Hue Industrial Zone, the venture has a total investment of VND1.2 trillion ($45.5 million).

Kim Long Motor Factory will feature comprehensive solutions from stamping, assembly, welding, and battery pack packaging. It is set to become one of Vietnam's leading battery pack manufacturing and assembly complexes. The factory is aligned with international standards and equipped with cutting-edge technology, featuring an automation rate of up to 90 per cent.

In the first stage, the factory is expected to reach a capacity of 1 million kWh per year, with plans for further expansion. The operation of the factory will not only ensure the supply of high-quality battery cells to Kim Long Motor's EV lines but also creates a foundation for Vietnam to affirm its position in the global EV and battery value chain – a strategic area to transform the future of green transportation and the circular economy worldwide.

Ho Cong Hai, general director of Kim Long Motor, said, "We consider the battery as the heart of EVs. Mastering the core technology in battery pack manufacturing and assembly is key to ensuring sustainable development. The partnership with LG Energy Solution will help Kim Long Motor secure a stable supply chain, optimise costs, and control quality, contributing to shaping and accelerating the development of high-quality Vietnamese-made EVs."

“Once operational, the battery pack manufacturing and assembly factory will achieve a localisation rate of 80 per cent by the second quarter of 2026, strengthening Vietnam's position in the regional and global clean energy map,” he added.

"The cooperation with LG creates a solid foundation for Kim Long Motor to secure a stronger footprint in the domestic market and gradually expand its reach to the international market. It is also a strategic step to reach the localisation rate of over 80 per cent by the second quarter of 2026. Thus, Kim Long Motor Hue vehicle manufacturing and assembly industrial park is poised to become a hub for vehicle and parts manufacturing and assembly in the region," he said.

This cooperation is in line with the government's efforts to create breakthroughs in science and technology, innovation, digital transformation, private sector development, and international integration, contributing to socioeconomic development and environmental protection.

Once operational, the battery pack manufacturing and assembly plant will stand as a symbol of the strategic partnership between Vietnam and global technology corporations. Beyond creating jobs and developing a specialised industrial park, the project will directly contribute to the development of Hue and the nation as a whole.

VIR