Vietnamese automaker VinFast has begun building its $174 million electric vehicle battery plants in the U.S., Reuters reported on Sunday, citing the company.
What Happened: A subsidiary of Vietnam's biggest conglomerate, Vingroup, the company plans to have its own supply chain of batteries and parts for its second plant overseas.
The company already has an EV battery project located in Vietnam on a 20-acre plot.
"The strategy enables us to own our supply chain of batteries and parts,” the report noted, citing Thai Thi Thanh Hai, vice-chair of Vingroup.
The company said it is looking to produce 100,000 battery packs per year in the first phase and then upgrade its capacity to one million.
The project would run at full capacity from 2025.
Why It Matters: VinFast expects to begin delivering electric vehicles to U.S. customers by the end of the next year. It would begin accepting pre-bookings for its upcoming VF e35 and VF e36 electric sport utility vehicles in the first half of 2022.
The company in October said it aims to sell 15,000 electric vehicles globally next year. The company is also eyeing a U.S. listing in the second half of 2022.
The company, which aims to compete with Tesla Inc TSLA, has set up an office in California and seeks to open 60 U.S. showrooms next year.
Photo: Courtesy of Vinfest
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