KIM LONG MOTOR and LG Energy Solution Officially Announce Battery Manufacturing Partnership in Vietnam

The event was attended by Mr. Le Van Tue – Head of the Hue City Economic and Industrial Zone Authority, leaders of KIM LONG MOTOR, LG Energy Solution, and international partner corporations. Under the cooperation agreement, LG Energy Solution will supply its latest generation NCM batteries. These new-generation batteries are highly safe, explosion-proof, smaller in volume yet lighter in weight, and most importantly, deliver at least 30% greater energy efficiency compared to LFP (Lithium Ferrous Phosphate – LiFePO4) batteries. They also provide longer lifespan and significantly extended driving range. LG Energy Solution will supply the battery cells, while KIM LONG MOTOR will produce and assemble the complete battery packs.

The battery production and assembly plant, located in the KIM LONG MOTOR Hue industrial park, is expected to begin operations in early 2026. Covering 9 hectares with a total investment of VND 1,200 billion, the facility will encompass comprehensive processes including stamping, assembly, welding, and final packaging of battery packs. It will be one of the most advanced battery manufacturing complexes in Vietnam, built to international standards, applying cutting-edge technology with up to 90% automation.

In its initial phase, the plant is expected to have a capacity of 1 million kWh per year, with further expansion planned in the coming years. This milestone highlights Vietnam’s deeper integration into the global electric vehicle supply chain – a strategic field shaping the future of green mobility and the circular economy worldwide. By mastering battery production, KIM LONG MOTOR not only optimizes costs and shortens supply times but also ensures superior quality and performance for its electric vehicle lines.

At the signing ceremony, Mr. Ho Cong Hai – Co-Deputy General Director of KIM LONG MOTOR in charge of Production, R&D, and Development – shared: “We consider the ‘heart’ of an electric vehicle to be the battery, and mastering core technology in battery production and assembly is the key to ensuring sustainable development in the future. Partnering with LG Energy Solution – the world’s leading Lithium-ion battery manufacturer – allows KIM LONG MOTOR to secure supply sources, optimize costs, and control quality. This is a critical factor in shaping and developing world-class ‘Made in Vietnam’ electric vehicles in the future. Once operational, the KIM LONG MOTOR Battery Production and Assembly Plant will help us achieve a localization rate of over 80% by Q2 2026, while reinforcing Vietnam’s position on the global clean energy map.”

This cooperation contributes practically to the implementation of the Politburo’s “four pillar resolutions,” as well as calls from the Party and State leadership for breakthroughs in science and technology, innovation, digital transformation, private sector development, and international integration. It will further support socio-economic growth and environmental protection, fostering rapid yet sustainable national development.

When operational, the Battery Production and Assembly Plant will become a symbol of strategic cooperation between Vietnam and global technology corporations. The project will not only create jobs and form a specialized industrial hub but also directly contribute to the development of Hue City and the nation as a whole.