Vietnamese automaker Kim Long Motor has signed a memorandum of understanding (MoU) with LG Energy Solution to secure a supply of cylindrical NMC battery cells. The agreement marks a key step as Kim Long prepares to assemble cell modules domestically for its electric vehicles.
LG Energy Solution will supply its latest-generation nickel manganese cobalt (NMC) battery cells—designed to offer enhanced safety, compact packaging, and reduced weight. The cells reportedly deliver at least 30% greater energy efficiency compared to lithium iron phosphate (LFP) batteries, translating to longer driving ranges.
The supplied cells will be processed into full battery packs at Kim Long’s advanced battery manufacturing facility in Hue, which is scheduled to start operations in early 2026. Spanning approximately 9 hectares within the Kim Long Motor Hue Industrial Zone, the facility boasts up to 90% automation.
During the MoU signing on August 28, Kim Long Motor’s general director, Ho Cong Hai, emphasized the strategic importance of mastering battery pack technology. He stated that collaboration with LG Energy Solution would secure supply stability, optimize costs, and ensure quality control—essential components for developing high-quality “Made in Vietnam” electric vehicles.
Kim Long Motor plans to localize over 80% of its vehicle production by Q2 2026, and the new battery assembly plant is expected to play a pivotal role in achieving that target. The facility’s initial annual production capacity is projected at 1 million kWh, with plans to expand further in the ensuing years.
This agreement not only strengthens Vietnam’s role in the regional EV and battery supply chain but also highlights its ambition to play a significant role in the global clean-energy and circular-economy landscape.
