VinFast partners Chinese company for making electric car batteries

The two plan to build the first lithium iron phosphate (LFP) battery plant in Vietnam, according to a statement released Monday by VinFast’s parent company Vingroup.

LFP is an iron-based battery that is not dependent on scarce raw materials like cobalt and nickel. Thus, while less energy-dense than nickel-based chemistries, LFP batteries are much cheaper.

U.S. electric car maker Tesla announced last month it would make a long-term shift toward LFP batteries.

Vingroup said Gotion is one of the top Chinese manufacturers of LFP batteries. It has eight research and development centers globally, and 10 manufacturing facilities in China.

Thai Thi Thanh Hai, deputy chairwoman of Vingroup, said the partnership would be a key to VinFast achieving autonomy in its supply chain.

It is also partnering with companies in the U.S., Israel and Taiwan for producing superfast charging batteries capable of longer distances and with greater lifespans.

VinFast seeks to become a global electric vehicle brand, and is set to deliver its first electric cars by the end of this year.