Vingroup’s chairman, Mr. Pham Nhat Vuong, has announced that he will donate 99.8 percent of VinES Energy Solutions Joint Stock Company’s shares to VinFast. The merger is designed to enhance VinFast’s self-sufficiency in battery technology and its production chain, while increasing its competitive edge in the ever-growing electric vehicle market.
Following the donation, VinES will be merged into VinFast to enhance its self-efficiency in battery technology and leverage resources to increase battery research and development for its vehicles.
VinES is a member company of Vingroup
with legal capital of $270 million. The company specializes in
researching, developing, and manufacturing advanced lithium-ion
batteries for mobility and energy storage applications. VinES also
cooperates with leading global battery technology partners and seeks to
become a comprehensive energy solution provider.
Under the terms
of the merger, VinFast will acquire all VinES’ intellectual property
related to battery cells, battery packs, manufacturing facilities,
technology, partnerships, and supplier contracts. This comprehensive
acquisition of VinES’ battery technology and modern manufacturing
facilities is an important step in completing VinFast’s fully integrated
production chain and creates an unparalleled competitive advantage for
VinFast in the global electric vehicle market.
In April 2023, Mr.
Pham Nhat Vuong signed an agreement committing him to donate $1 billion
from his personal assets to VinFast. Vingroup also announced the
contribution of a further $500 million to VinFast in non-refundable
grants as well as a guarantee for a loan of $1 billion carrying a
maximum tenor of five years to support VinFast’s growth and global
expansion plans.
