Vietnamese automaker Kim Long Motor Hue JSC has signed a cooperation agreement with South Korea’s LG Energy Solution regarding a VND1.2 trillion ($45.5 million) battery production plant in the central province of Thua Thien-Hue.

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

The plant, to be located inside the Kim Long Motor Hue Industrial Park, will span nine hectares in Chan May-Lang Co economic zone. Construction is scheduled to begin in early 2026.

The factory will be equipped with international-standard production lines covering stamping, welding, assembly, and packaging, with up to 90% automation, making it one of Vietnam’s most advanced battery facilities.

In its first phase, the plant will have an annual capacity of 1 million kWh, with plans to expand in line with demand for Kim Long’s future electric vehicle models.

Kim Long’s CEO Ho Cong Hai said the partnership would help the automaker secure key components, lower costs, improve quality control, and boost the localization rate to over 80% by Q2/2026.

Founded in 2018, Kim Long Motor has scaled up rapidly, raising its charter capital from VND500 billion ($19 million) to nearly VND3.98 trillion ($151 million) as of end-2024.

The company recently received approval to increase its investment in the Kim Long Motor Hue Automotive Complex at the Chan May-Lang Co economic zone to VND21.18 trillion ($804 million), from the original $260 million.

Kim Long has also partnered with Futa Group and Dongfeng Dana, both in China, to produce and distribute 80,000 automotive axles annually in Vietnam. It is collaborating with China-based Changan Automobile to build a 30-ha passenger car plant with a capacity of 50,000 vehicles per year, slated to break ground this year.

Regarding export, the company has signed contracts to deliver 200 buses annually to South Korea and 3,000 buses per year to Thailand.

Source: https://theinvestor.vn/