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Electric vehicles

LG Energy Solution Expands Presence in Southeast Asia with Battery Deal

Strategic Insights

— 1 min read

LG Energy Solution has secured a significant battery supply deal with Vietnam's Kim Long Motor, marking a major expansion of its presence in the Southeast Asian market. Under the agreement, LG Energy Solution will provide cylindrical battery cells to Kim Long Motor for its electric buses in central Vietnam. The partnership is seen as a strategic move by Kim Long Motor to establish itself as a key player in the region's electric vehicle industry, while LG Energy Solution aims to capitalize on the growing demand for batteries in the region.

Key Takeaways:

  • LG Energy Solution has signed a memorandum of understanding with Kim Long Motor to deliver cylindrical battery cells for the latter's electric buses in Hue, central Vietnam.
  • The partnership aims to help Kim Long Motor proactively source, optimize costs, and control quality, vital for competing with future "Made in Vietnam" electric vehicles.
  • Kim Long Motor will use the battery cells supplied by LG Energy Solution to manufacture battery packs at its new manufacturing and assembly plant, expected to begin operation in early 2026.
  • The new plant, with an initial annual production capacity of approximately 1 million kilowatt-hours, will contribute to Vietnam's localization goal of over 80% by the second quarter of 2026.
  • LG Energy Solution highlighted the high performance of its NCM battery technology, suitable for long-distance routes, as a key factor in securing the contract with Kim Long Motor.
  • Le Quoc Dat, Vice Chair of Kim Long Motor's Board of Directors, emphasized the importance of mastering battery technology for sustainable development in the future.

Statistics:

  • LG Energy Solution will supply cylindrical battery cells to Kim Long Motor.
  • The partnership aims to help Kim Long Motor achieve over 80% localization by the second quarter of 2026.
  • The new battery plant, operated by Kim Long Motor, will have an initial annual production capacity of approximately 1 million kilowatt-hours.
  • The plant is expected to begin operation in early 2026.
  • Kim Long Motor invested 1.2 trillion Vietnamese dong ($45,500) to build the new plant.

Sources:

  • LG Energy Solution
  • Global Data Point (, 2022)

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