VinFast EV manufacturer all set to acquire VinES

VinFast Auto, a manufacturer of

electric vehicles

As an EV manufacturer looking to save 5% to 7% on battery prices, VinFast, which was supported by Vietnam's largest conglomerate Vingroup, said that the strategic purchase of VinES, another company within the Vingroup ecosystem, would help it ensure the supply of batteries.

VinFast was founded in 2017 and will begin producing EVs in 2021. It has received ongoing financial backing from its creator, who is also the richest man in Vietnam.

VinFast stated in a filing with the U.S. Securities and Exchange Commission that it would purchase VinES for nothing more than the assumption of debt totalling around $462 million, with Vuong prepared to offer the EV manufacturer grants for all interest payments related to current VinES borrowings through to 2027.

According to Thuy Le, VinFast's global CEO, "the purchase of VinES will help VinFast control our battery technology and supply chain, thereby optimising operating expenses and enhancing technology content in our electric vehicles." However, the manufacturer predicted that VinFast's expenditures for battery R&D and plant operations will rise in the near future. VinFast will take over all of VinES' rights and responsibilities following the purchase.

According to Thuy Le, VinFast, which was listed on the Nasdaq in August, intends to build kit assembly facilities in Indonesia's nickel-rich nation and to partner with VinES to use the metal to make batteries. For the three months that ended on September 30, the automaker's revenue increased by 159% to $343 million. Its $623 million net loss increased by 33.7%. More than half of the 13,000 units it sold in the second and third quarters of this year went to its affiliate.