INDUSTRIES

Vingroup chairman donates battery company to VinFast

Vingroup’s Chairman, Phạm Nhật Vượng, announces that he will donate 99.8 percent of VinES Energy Solutions JSC’s shares to VinFast.

 

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The VinFast factory in Hai Phong City. — Photo courtesy of VinFast

HÀ NỘI —  Vingroup’s Chairman, Phạm Nhật Vượng, announced on October 11 that he would donate 99.8 per cent of VinES Energy Solutions JSC’s shares to VinFast.

The merger is designed to enhance VinFast’s self-sufficiency in battery technology and its production chain, while increasing its competitive edge in the ever-growing electric vehicle market.

Following the donation, VinES will be merged into VinFast to enhance its self-sufficiency in battery technology and leverage resources to increase battery research and development for its vehicles.

VinES is a member company of Vingroup with legal capital of VNĐ6.5 trillion ($270 million). The company specialises in researching, developing, and manufacturing advanced lithium-ion batteries for mobility and energy storage applications. VinES also cooperates with leading global battery technology partners and seeks to become a comprehensive energy solution provider.

Under the terms of the merger, VinFast will acquire all of VinES’ intellectual property related to battery cells, battery packs, manufacturing facilities, technology, partnerships, and supplier contracts. This comprehensive acquisition of VinES’ battery technology and modern manufacturing facilities is an important step in completing VinFast’s fully integrated production chain and creates an unparalleled competitive advantage for VinFast in the global electric vehicle market.

In April 2023, Vượng signed an agreement committing him to donate $1 billion from his personal assets to VinFast. Vingroup, together with Vượng, also announced the contribution of a further $500 million to VinFast in non-refundable grants as well as a guarantee for a loan of $1 billion carrying a maximum tenor of five years to support VinFast’s growth and global expansion plans.

Theo Vietnamnews