Pham Nhat Vuong, chair of Vingroup automotive group, is handing over 99.8% of his shares in Vines Energy Solutions to its sister company, Vietnamese car maker Vinfast. The move is designed to reduce Vinfast’s reliance on other battery companies and enhance its supply chain.
Vinfast said on Wednesday that Vines will be merged into Vinfast. Vines has capital of some $270 million and specialises in researching, developing, and manufacturing lithium-ion batteries for mobility and energy storage applications.
It also partners with leading global battery technology companies. Vinfast will acquire all intellectual property related to battery cells, battery packs, manufacturing facilities, technology, partnerships, and supplier contracts.
Vines began building a Vietnamese battery factory last November with China’s Gotion, whose affiliate Gotion Investment reportedly holds 15 million Vinfast shares.
Le Thi Thu Thuy, vice chair of Vingroup and global CEO of Vinfast said: “The acquisition of Vines will help Vinfast control our battery technology and supply chain, thus optimising operating expenses and enriching technology content in our electric vehicles. This is also an important step towards developing and controlling an integrated supply chain.”
In April 2023, Pham Nhat Vuong signed an agreement committing him to donate $1 billion from his personal assets to Vinfast. Vingroup and Vuong also announced a further $500 million to Vinfast in non-refundable grants. They also offered a guarantee for a five-year $1 billion loan to support Vinfast’s growth and global expansion.
Vinfast listed on Nasdaq in the US in August and is thought to be considering building factories in the US, India and Indonesia, according to Nikkei Asia. Acquiring Vines will save Vinfast 5 – 7% in battery costs. It currently sources batteries from Gotion, Samsung and CATL.