VinFast to build U.S. battery factory in all-electric transformation

The company will stop making gasoline engines after just a few years of production

SAN FRANCISCO– Vietnam’s VinFast prepares to construct electrical automobile battery cells and also packs in a new united state production complicated, its global president told Reuters, as the business pledged to transform itself right into an all-electric automaker by the end of this year.

VinFast, part of Vingroup JSC, the biggest corporation in the Communist-ruled country, came to be the country’s very first full-fledged residential cars and truck manufacturer when gasoline-powered versions constructed under its very own badge struck the streets in 2019.

The business, which began selling EVs in Vietnam at the end of 2021, claimed in a statement on Thursday it intended to become what it claimed would be the initial vehicle business to stop making gasoline-powered automobiles and shift to all-electric car manufacturing from late 2022.

VinFast is wagering huge on the U.S. market, where it wishes its electrical SUVs as well as a battery leasing design will certainly suffice to tempt consumers away from the similarity Tesla as well as General Motors.

“We will certainly develop our gigafactory in the united state as well,” Le Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO stated, describing the brand-new battery facility in an interview throughout her U.S. see to go to the Consumer Electronic devices Show in Las Vegas.

The firm will certainly remain to source batteries from its vendors, she included.

Thuy said VinFast will originally set up battery packs with cells sourced from its provider at its united state complicated before beginning its very own manufacturing there.

“We have actually narrowed down from I think, over 50 sites to concerning three websites,” she stated.

She will visit some websites throughout her trip before making a decision this year, adding that the “huge site” would certainly also consist of an electrical bus factory.

In December, Vingroup claimed it had actually started building a battery cell plant in Vietnam. The firm is aiming to at first create 100,000 battery loads each year, with $174 million in investment, and afterwards upgrade capacity to one million.

VinFast prepares to begin generating electric automobiles in the U.S. in the late 2024.

The business stated prices for its VF8 sport utility vehicle (SUV) started from $41,000 in the USA, which it would use blockchain technology to record orders as well as verify ownership. By comparison, a Tesla SUV costs about $50,000.

Vingroup stated it was targeting worldwide electric automobile sales of 42,000 next year.

Shares of Vingroup rose as long as 5.8% on Thursday after it revealed 3 VinFast’s electric automobiles line-up as well as the strategies to go all-electric. VinFast is looking at a share listing in the United States this year.