Kim Long Motor Hue Partners with LG Energy Solution for New Battery Plant
Vietnamese automaker Kim Long Motor Hue JSC has formally signed a cooperation agreement with South Korea’s LG Energy Solution for the establishment of a new VND1.2 trillion (approximately US$45.5 million) battery production plant in the central province of Thua Thien-Hue.
Under the terms of this pivotal deal, LG Energy Solution, a global leader in battery technology, will take on the responsibility of supplying the crucial cylindrical battery cells, while Kim Long Motor will be tasked with the manufacturing and assembly of the complete battery packs.
This strategic division of labor is designed to combine South Korean battery expertise with Vietnamese manufacturing capacity.
The forthcoming plant will be located inside the Kim Long Motor Hue Industrial Park, encompassing a significant nine hectares within the Chan May-Lang Co economic zone, highlighting the scale of the investment.
Construction is scheduled to commence in early 2026, marking the start of a major industrial project.
The facility is being planned to be equipped with international-standard production lines that will cover all necessary processes, including stamping, welding, assembly, and packaging.
A key feature of the new factory is its projected level of automation, expected to reach up to 90%, positioning it as one of Vietnam’s most advanced battery manufacturing facilities and ensuring high levels of precision and efficiency.
Boosting Localization and Securing the EV Supply Chain
The partnership with LG Energy Solution is a critical move for Kim Long Motor, aimed at securing key components for its future electric vehicle models, reducing costs, and dramatically increasing its localization rate within Vietnam.
Kim Long’s CEO, Ho Cong Hai, explained that the strategic partnership will provide immediate and tangible benefits, helping the Vietnamese automaker to secure a reliable supply of key battery components, effectively lower overall production costs, and significantly improve quality control standards by bringing the manufacturing process in-house.
A primary objective of the company is to substantially boost its localization rate to over 80% by the second quarter of 2026, a target that relies heavily on the success of this new battery plant.
Founded in 2018, Kim Long Motor has demonstrated a rapid scaling trajectory, raising its charter capital from an initial VND500 billion (US$19 million) to nearly VND3.98 trillion (US$151 million) by the end of 2024.
The company recently received government approval to further increase its investment in the larger Kim Long Motor Hue Automotive Complex at the Chan May-Lang Co economic zone to an enormous VND21.18 trillion (US$804 million), a massive increase from its original investment plan of US$260 million.
This significant capital commitment underscores the long-term vision and scale of Kim Long’s ambitions in the Vietnamese automotive industry.
Strategic Partnerships and Broad Manufacturing Expansion
Kim Long Motor’s expansion strategy includes multiple international partnerships, not only in electric vehicle components but also across automotive parts manufacturing and passenger car production for both the domestic and export markets.
Beyond the battery agreement, Kim Long has also secured other strategic collaborations that point to a broad and aggressive expansion plan.
The company has partnered with China’s Futa Group and Dongfeng Dana to establish a joint venture focused on producing and distributing 80,000 automotive axles annually within Vietnam, further strengthening the local supply chain for heavy vehicles.
Additionally, the Vietnamese firm is collaborating with the China-based Changan Automobile to construct a separate 30-hectare passenger car plant, which is designed to have a substantial annual production capacity of 50,000 vehicles, and is slated to break ground this year.
These diverse manufacturing and assembly projects confirm Kim Long’s commitment to becoming a comprehensive automotive player, covering everything from key electric vehicle components to passenger cars and buses.
Furthermore, the company is demonstrating a strong focus on export markets, having already signed contracts to deliver 200 buses annually to South Korea and securing a much larger contract to supply 3,000 buses per year to Thailand.
This export momentum, combined with the strategic component localization facilitated by the LG Energy Solution joint venture, positions Kim Long Motor as a rapidly emerging regional powerhouse in the Southeast Asian automotive sector.
