Vietnamese automaker VinFast invests in Israeli battery startup for electric vehicles

A VinFast VF 5 electric vehicle will be on display at the VinFast booth at CES 2022 in Las Vegas … [+] Convention Center on January 5, 2022 in Las Vegas, Nevada.

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VinFast, the automotive arm of the largest Vietnamese conglomerate, Vingroup, has led a $ 80 million financing round for Israeli electric vehicle battery developer StoreDot. The deal is set to help VinFast secure fast-charging batteries for its own electric vehicles as it prepares for launch in the US

StoreDot, which is also backed by Russian Jewish billionaire Roman Abramovich, will use the funds for research and development as well as spur mass production of silicon-dominated, ultra-fast-charging battery cells through 2024, StoreDot said in a statement.

VinFast, with ambitions to sell electric cars outside of its home market, could make the funding round a safe source of batteries for its own vehicles, analysts say.

“VinFast has built a wide web by working with a number of battery companies – both established and startups,” says Christopher Robinson, senior analyst at Lux Research. “VinFast could be an early customer of the company and even invest in battery production. This would shorten StoreDot’s time to market and give VinFast access to an emerging battery technology. “

Third-party partnerships will help VinFast develop vehicles, the automaker’s deputy CEO Pham Thuy Linh said in the statement. StoreDot is “run by talented scientists and seasoned entrepreneurs” and with sufficient resources should be ready for mass production “in the shortest possible time worldwide,” she added.

VinFast is preparing for a US IPO this year in order to build up its American customer base. VinFast presented two electric car models at the Los Angeles Auto Show 2021 in November, the VF e35 and the VF e36.

VinFast isn’t the only one looking at partnerships related to electric vehicles, says Sam Abuelsamid, senior analyst at research firm Guidehouse Insights. “When it comes to synergies, most OEMs are investing in battery companies to provide access to what they consider important technologies that enable much faster charging and better lifespan.” [and] higher energy density and guaranteed supply, ”he says.

Choosing the right battery can affect the popularity of an electric vehicle. Access to charging and charging time are among the most important consumer concerns when buying electric cars, Guidehouse Insights found in a survey. StoreDot’s battery technology is specifically focused on fast charging, says Robinson.

VinFast has brought on board executives from Tesla, BMW, Porsche, Toyota and Nissan to develop the company into a global smart electric car company. A VinFast official said some of the company’s models were being sold for less than their Tesla equivalents. The 28-year-old Vingroup, chaired by billionaire Pham Nhat Vuong, mainly deals with Vietnamese real estate, retail, hotel resorts and smartphone manufacturing.