King Long Motor and BYD Invest $130 Million in Vietnam for EV Battery Plant

According to foreign media reports, on January 27, Vietnam's Kim Long Motor and China's BYD signed a strategic cooperation agreement, and simultaneously held a groundbreaking ceremony for an electric vehicle battery factory. The project has a total investment of US$130 million and will be implemented in two phases.

Image source: King Long Motor

Phase I covers an area of 4.4 hectares with a designed annual production capacity of 3 GWh, primarily producing batteries for commercial vehicles, including electric trucks, electric buses, and electric vans. Phase II will add 10 hectares of land, increasing the total capacity to 6 GWh, and will initiate research and development and trial production of passenger vehicle batteries, aiming for export and the establishment of a complete localized industrial chain.

Jinlong Bus is developing a 34-seat pure electric sleeper bus based on advanced battery technology provided by BYD. This model is planned to be the first pure electric sleeper bus to be developed and put into production in Vietnam and Southeast Asia, manufactured under the "Made in Vietnam" brand for mid-to-high-end passenger transport services.

The General Manager of King Long Motors stated that this collaboration is a crucial element of the company's long-term strategy, aimed at mastering core battery technology. The project is projected to achieve a localization rate exceeding 80% by the second quarter of 2026. Once the factory is stably operational, it will simultaneously meet the strict demands of the Vietnamese domestic market for high-performance power batteries and promote the formation of a battery and electric vehicle manufacturing cluster with economies of scale in Vietnam, enhancing its participation in the global new energy vehicle supply chain.

The battery factory will be located in Thua Thien Hue province, within King Long Motors' own industrial park, an area where the Vietnamese government supports the strategic development of the new energy industry. Specific production launch timelines have not been disclosed, nor have details regarding BYD's potential involvement in factory operation management or technology licensing models.