LGES and Kim Long Sign NCM Battery Supply MoU to Power Vietnam’s EV Future

Strategic Partnership Boosts Southeast Asia’s EV Ecosystem

South Korea’s LG Energy Solution (LGES) has signed an MoU to supply NCM battery cells to Vietnam’s Kim Long Motor. This move strengthens Vietnam’s ambitions to become a regional EV production hub. The agreement supports Kim Long’s upcoming $45.5 million battery plant in Hue City, which will begin operations in early 2026.

The facility, located within the Kim Long Motor industrial park, will produce and assemble battery packs using LGES-supplied cylindrical NCM cells. The first-phase production capacity is expected to reach 1 GWh per year, with additional scaling planned. The supply timeline and volume details have not yet been disclosed.

In addition, Thailand’s Cho Thavee Group signed a deal to purchase 3,000 electric and diesel buses from Kim Long. These vehicles will feature either NCM batteries or Yuchai diesel engines, thereby expanding the region’s mobility solutions.

Vietnam’s EV Policy Push and Battery Sector Growth

Vietnam has launched a green transportation action plan aiming to convert 100% of urban vehicles to electric by 2050. Under its 2022 policy roadmap, it targets 50% electrification of urban cars and full electrification of buses and taxis by 2030. Additionally, it plans to ban production and import of fossil fuel vehicles by 2040.

This LGES-Kim Long deal directly supports these ambitions by localizing battery production. As battery demand accelerates in Southeast Asia, strategic alliances like this can shorten supply chains and reduce dependency on imports.

The Vietnamese government continues to offer regulatory and infrastructure support to meet these long-term climate and mobility goals.

SuperMetalPrice Commentary:

The LGES and Kim Long Motor MoU marks a pivotal moment in Vietnam’s clean mobility journey. By anchoring battery production domestically, Vietnam is not only localizing critical mineral supply chains but also aligning with global energy transition trends. For investors and stakeholders in nickel, cobalt, and manganese, this project indicates rising regional demand and the potential for further supply chain diversification beyond China and South Korea. We expect more such collaborations as Vietnam accelerates its EV policy targets toward 2030 and 2050.