VinFast and Marubeni Collaborate To Repurpose EV Batteries

19 December 2023

VinFast, Vietnam's leading electric vehicles manufacturer, and Marubeni Corporation ("Marubeni"), a major Japanese trading and investment conglomerate, officially announced a Memorandum of Understanding (MOU) to explore opportunities in the secondary use of electric vehicle (EV) batteries and the potential to establish a circular economy model. The MOU marks a significant milestone in the strategic partnership between these two companies, and represents a meaningful effort to reduce greenhouse gas emissions in Vietnam and globally.

The MOU announcement between VinFast and Marubeni took place in the presence of the Prime Minister of Vietnam, Mr. Pham Minh Chinh, during The Vietnam – Japan Economic Forum and The Commemorative Summit for the 50th Year of ASEAN – Japan Friendship and Cooperation, being held in Tokyo from December 16 to 18, 2023.

Under the MOU , VinFast and Marubeni will collaborate on researching and manufacturing Battery Energy Storage Systems (BESS) using recycled electric vehicle batteries, with VinFast supplying used electric vehicle batteries and Marubeni conducting feasibility assessments, technical consulting, and BESS deployment. Both companies will also work closely together to promote business opportunities in the field of recycled electric vehicle batteries, with the aim to establish a circular economic model.

Marubeni is expected to leverage exclusive technology from its strategic partner to recycle VinFast's electric vehicle batteries, repurposing them into affordable and easily manufacturable BESS without the need for disassembly, processing and repackaging of the batteries.

Mr. Pham Nhat Quan Anh, Deputy CEO of VinFast Manufacturing Division, said: "We are delighted to collaborate with Marubeni to jointly research and implement clean energy and innovative energy storage solutions. This signing marks a significant step in VinFast's strategy to establish a circular economy model and further reduce the environmental footprint of our manufacturing activities. Optimizing the lifecycle of electric vehicle batteries not only enhances access to smart electric mobility but also fosters a green and sustainable future for all."

Mr. Satoru Harada, Executive Officer, Chief Operating Officer of Power Division of Marubeni, said: "Marubeni's values of ' Fairness, Innovation, and Harmony ' align with VinFast's innovative direction towards reducing emissions and building a green future. Leveraging our strengths and extensive experience in implementing large-scale energy projects across the global value chain, including battery recycling technologies, Marubeni expects to further enhance the strategic cooperation with VinFast to develop solutions that contribute to building a circular economy and promoting climate change mitigation policies."

In May 2023, Marubeni Green Power Vietnam Co., Ltd . , a subsidiary of the Marubeni Corporation, signed an agreement withVinES Energy Solution Joint Stock Company, a subsidiary of VinFast and a manufacturer of electric vehicle batteries and BESS products.

By repurposing electric vehicle batteries, VinFast expects to not only generate significant value in the circular economy model but also promote an innovative approach to enable sustainable transportation development and emissions-free economic growth in Vietnam and globally.