Update: More added according to Gotion's press release.

The first phase of the plant has a planned annual capacity of 5 GWh and is expected to be operational by the end of 2023.

(Image credit: Gotion)

Gotion High-tech and VinES Energy Solutions, a subsidiary of Vietnam's Vingroup JSC, have begun construction of a battery plant in the Southeast Asian country, the first lithium iron phosphate (LFP) battery plant in Vietnam, the Chinese power battery giant announced Saturday.

The first phase of the plant has a planned annual capacity of 5 GWh and is expected to come online by the end of 2023, Gotion said, adding that in the future, the plant's products will meet the demand for batteries for new energy vehicles by VinFast, an electric vehicle production unit of Vingroup.

VinFast said Thursday it has reached an agreement with US car subscription service Autonomy to supply more than 2,500 units, its largest corporate order to date.

Gotion has a 51 percent stake in the Vietnam project and VinES has a 49 percent stake, the battery giant's press release said, without disclosing the amount of the investment.

Reuters reported on Friday that the two companies will invest $275 million in the plant.

The plant, located in Vietnam's central Ha Tinh province, will be able to produce 30 million lithium iron phosphate (LFP) cells a year, which will be used in electric vehicle batteries and energy storage systems, Reuters said, citing a statement from Vingroup.

Gotion is one of the largest manufacturers of power batteries in China.

In October, Gotion held a 4.52 percent share of China's power battery installed base, ranking fourth.

In the global power battery market, Gotion ranked eighth with a 2.9 percent market share in September, according to Seoul-based SNE Research.

BYD's position as No. 2 global power battery maker taken by LG Energy Solution in Sept-CnEVPost