Insufficient capacity was not available for the Chinese exporting producer due to lack of relevant market power.

In a significant move towards the electrification of transportation, Kim Long Motor and LG Energy Solution have announced plans to establish a battery pack assembly site in the industrial zone of Hue, Vietnam. The pack assembly site, spanning over a nine-hectare area, is set to commence production in early 2026.

The cooperation between the two companies aims to secure the supply of batteries for electric vehicles and marks an important step in Kim Long Motor's long-term goal to achieve a localization rate of more than 80 percent. LG Energy Solution will supply battery cells to Kim Long Motor, with the cells having NMC chemistry and being cylindrical lithium-ion cells.

Kim Long Motor will assemble these battery cells into battery systems at its own plant, using technology from LG Energy Solution. The initial capacity of the pack assembly site during the first phase is planned to be one gigawatt-hour per year, with further expansion possible in the coming years.

The estimated investment volume for the pack assembly site is around $46 million, and the production start time for the battery cell manufacturing by Kim Long Motor in Hue, Vietnam, is set for the first half of 2026. The pack assembly site will have an automation rate of up to 90 percent, ensuring efficient and high-quality production.

The battery systems produced at the pack assembly site will be used for electric buses, marking a significant advancement in the Vietnamese public transportation sector. The production of the battery systems and the battery cells is scheduled to start in early 2026, signalling a promising future for electric mobility in Vietnam.

With the pack assembly site, Kim Long Motor is taking a significant step towards becoming a key player in the electric vehicle market, not only in Vietnam but in the wider region as well. The cooperation between Kim Long Motor and LG Energy Solution is expected to contribute to the growth of the electric vehicle industry in Vietnam and the region.