VinFast, Vietnam’s leading electric vehicles manufacturer, and Marubeni Corporation agreed to explore opportunities in the secondary use of electric vehicle (EV) batteries. Moreover, extending the agreement to set up a potential circular economy model.

The agreement marks a significant milestone in the strategic partnership between these two companies. Particularly, it represents a meaningful effort to reduce greenhouse gas emissions in Vietnam and globally.

VinFast and Marubeni formalized the agreement in the presence of Vietnam Prime Minister Pham Minh Chinh. Moreover, the signing took place during The Vietnam – Japan Economic Forum and The Commemorative Summit for the 50th Year of ASEAN – Japan Friendship and Cooperation.

Road to Circular Economy

In the agreement, VinFast and Marubeni will collaborate on researching and manufacturing Battery Energy Storage Systems (BESS) using recycled electric vehicle batteries. Here, VinFast will supply used electric vehicle batteries. On the other hand, Marubeni will conduct 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 to establish a circular economic model.

Marubeni wants to leverage its exclusive technology from its strategic partner to recycle VinFast’s electric vehicle batteries. Hence, 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 happy 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.”

Meanwhile, 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…

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.”

Innovative Approach to Sustainable Transportation

In May 2023, Marubeni Green Power Vietnam Co., Ltd., a subsidiary of the Marubeni Corporation, signed an agreement with VinES Energy Solution Joint Stock Company. The company is 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.