Korean battery maker expands presence in Asia’s emerging EV market
LG Energy Solution has scored a battery supply deal with Vietnam’s Kim Long Motor, expanding its presence in the Southeast Asian market.
According to LG Energy Solution, the Korean battery maker signed a memorandum of understanding with the Vietnamese automaker to deliver the former’s cylindrical battery cells for the latter’s electric buses in Hue, central Vietnam, on Thursday.
The size of the deal was not disclosed.
LG Energy Solution pointed to the high performance of its nickel, cobalt and manganese, or NCM, battery — apt for long-distance routes — and industry-leading battery technology as the factors behind securing the contract with Kim Long Motor.
“We consider the ‘heart’ of an electric vehicle to be the battery, and mastering the core technology of manufacturing and assembling battery packs is the key to ensuring sustainable development in the future,” said Le Quoc Dat, vice chair of Kim Long Motor’s board of directors.
“The partnership with LG Energy Solution, a leading global manufacturer of lithium-ion batteries, will help Kim Long Motor proactively source, optimize costs and control quality, which is vital for competing with future 'Made in Vietnam' electric vehicles.
Kim Long Motor announced that it will use the battery cells supplied by LG Energy Solution to manufacture battery packs at its new manufacturing and assembly plant, which is expected to begin operation in early 2026. The automaker invested 1.2 trillion Vietnamese dong ($45,500) to build the new plant within the Kim Long Motor Hue Industrial Park.
According to Kim Long Motor, the new battery plant is expected to have an annual production of about 1 million kilowatt-hours in its initial stage, with plans to expand in the future.
“Kim Long Motor Battery Pack manufacturing and assembly plant, once operational, will help achieve the localization goal of over 80 percent by the second quarter of 2026, and also contribute to making Vietnam a prominent player on the global and regional map of the clean energy industry," said Le.
hwkan@heraldcorp.com
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