China's Sunwoda plans $275mn battery plant in Vietnam

Major Chinese lithium-ion battery manufacturer Sunwoda plans to build a 2bn yuan ($275mn) battery plant in northern Vietnam's Bac Giang province.

The site is expected to produce consumer battery cells, system-in-package and batteries, said Sunwoda. Capacity was undisclosed but the site is expected to generate around $1bn/yr of revenue, according to an official portal by Bac Giang Provincial People's committee.

Northern Vietnam houses sites of multiple major technology and semiconductor firms including Apple, Foxconn and Samsung, but unannounced or short-notice power cuts have affected production bases in the region. Power outages in Northern Vietnam during May-June 2023 disrupted production and were estimated to have shaved 0.3pc off the country's GDP, according to a 2023 report by World Bank.

But the province has "overcome the power supply difficulties", said the current chairman of the Bac Giang Provincial People's committee chair Le Anh Duong. The power supply lines and stations for manufacturing plants in the province have been strengthened, Duong said, adding that the province is looking at upgrading its electricity transmission system and prioritising the allocation of electricity output to key manufacturing companies. Sunwoda will be on its power supply priority list if Sunwoda goes ahead with the investment, said Duong.

Rising market barrier pressure and overseas demand prompted major Chinese battery firms to expand overseas in an attempt to deal with geopolitical curbs. Disclosed overseas investment from China's lithium-ion battery sector totalled Yn565bn as of June, according to Chinese research institution EV Tank earlier this month.

By Joseph Ho