Kim Long Motor and BYD Battery have formally launched construction of a new electric vehicle battery manufacturing facility in central Vietnam, marking BYD’s first such project in the country. The two companies signed a strategic cooperation agreement on Tuesday at the Kim Long Motor automobile manufacturing and assembly industrial park in Hue City, committing a combined investment of US$130 million across two phases.
Under the agreement, BYD Battery will provide technical support and transfer core battery production technologies, while Kim Long Motor will oversee the construction and operation of the new plant. The initiative is designed to help Vietnamese firms acquire the expertise needed to produce advanced batteries—widely regarded as the most critical component in determining electric vehicle performance and safety—and to reinforce Vietnam’s position in the global automotive supply chain.
Located within the Chan May-Lang Co industrial zone, the factory will initially focus on batteries for electric trucks, buses, minibuses and minivans. These batteries will supply domestic demand and be integrated into Kim Long Motor’s commercial EVs under the “Made in Vietnam” brand. The company is also developing a 34-seat electric sleeper bus using BYD’s battery technology, which would be the first of its kind in Vietnam and across Southeast Asia.
In the first phase, the facility will occupy 4.4 hectares and target an annual production capacity of three gigawatt-hours (GWh). The second phase will expand the site to 10 hectares, doubling capacity to six GWh per year and extending output to batteries for passenger cars.
Dao Viet Anh, CEO of Kim Long Motor, said the partnership underscores the company’s long-term strategy to master core EV technologies and build an integrated value chain. He added that once the plant is fully operational, Kim Long Motor expects to achieve a localization rate of over 80 percent by the second quarter of 2026. The project is also poised to contribute to the development of a regional hub for battery and electric vehicle manufacturing in Vietnam.
Source: Tuoi Tre News
