Vietnam to Build $130 Million EV Battery Plant With China’s BYD as Regional Supply Chains Expand
Vietnam’s industrial push into electric vehicles is gaining momentum as local manufacturer Kim Long Motor moves forward with a battery production partnership involving China’s BYD. The planned facility, valued at around $130 million, will be built in central Vietnam and focus initially on batteries for electric commercial vehicles. Kim Long Motor will fund construction while BYD provides technical and technological support, underlining China’s growing role as a critical supplier of EV know how across Southeast Asia. The project reflects how regional manufacturers are accelerating localisation of battery supply as demand for electric buses, trucks and minibuses increases. For Vietnam, the deal supports broader ambitions to build domestic EV capacity rather than rely on imported components, while integrating into China centred clean energy supply chains.
The battery plant will be located on a 4.4 hectare site and is designed to reach an initial production capacity of 3 gigawatt hours per year. Output will be dedicated to commercial electric vehicles, a segment that is expanding rapidly as cities across Vietnam seek cleaner public transport and logistics fleets. Kim Long Motor has said operations are expected to begin soon, though no firm timeline has been disclosed. A second phase will see the facility expand to 10 hectares and double capacity to 6 gigawatt hours annually, with battery production extended to electric passenger cars. The phased approach allows the partners to scale alongside market demand while limiting upfront risk in a sector where technology cycles are moving quickly.
The project sits within a fast evolving Vietnamese EV landscape dominated so far by domestic champion VinFast, which has led adoption in passenger vehicles and is now entering commercial segments. Rising competition and policy support are encouraging new players to invest across the supply chain, particularly in batteries, which account for a large share of vehicle costs. By partnering with BYD, Kim Long Motor gains access to mature battery technology and manufacturing processes already deployed at scale in China. For BYD, the deal strengthens its footprint in Southeast Asia at a time when Chinese EV firms are seeking growth outside a crowded home market and navigating trade barriers in Europe and North America.
More broadly, the agreement highlights how Vietnam is positioning itself as a regional manufacturing hub linked closely to China’s EV ecosystem. Rather than competing head on with Chinese battery giants, local firms are opting for partnerships that bring in expertise while retaining capital investment at home. This model aligns with Hanoi’s industrial strategy of upgrading domestic capabilities and capturing more value from clean technology industries. As commercial EV adoption accelerates across Southeast Asia, battery plants such as this one are likely to become strategic assets, anchoring supply chains and attracting follow on investment in charging, vehicle assembly and energy storage. The Kim Long BYD project signals confidence that demand fundamentals will continue to support large scale battery manufacturing in the region.
