Vietnam-based automaker, VinFast, a subsidiary of Vingroup, announced on Tuesday it will build its first electric vehicle factory in the United States.
The factory will see $2 billion for its first phase of construction, located in North Carolina on an 800-hectare plot of land, with an annual production capacity of 150,000 cars per year.
Construction is set to begin this year once VinFast gains a license. The factory is set to build electric buses and SUVs, EV battery cells and also support suppliers. The new plant is expected to be completed by July 2024.
“With a manufacturing facility right in the U.S. market, VinFast can stabilise prices and shorten product delivery time, making our EVs more accessible to customers, and contributing to local environmental improvement goals,” said Nguyen Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO, in a statement, reports Reuters.
VinFast has been selling gasoline cars in Vietnam since 2019, but in January of this year, it said the company would be transitioning to EVs only by late 2022. VinFast EVs launched in Vietnam in late 2021 and is targeting global EV sales of 42,000 cars in 2022.
The company’s 5-seat mid-size VF 8 electric SUV is priced from $41,000 USD in the US, offering 316.9 miles (WLTP standard) of range, while its VF 9 full-size crossover SUV is priced from $56,000 USD, offering 422.5 miles (WLTP standard) of range.
“We’ve combined the best in design, manufacturing, and technology to create the new VF 8 and VF 9 all-electric SUVs. By adopting a human-centric design approach, we apply our advanced technology in the service of one simple goal: to improve the lives of the people who drive our vehicles and the life of our planet,” explains the VinFast website.
VinFast said back in January it is seeking to build a factory in Europe, located in Germany. It remains to be seen if and when VinFast will be able to ramp up production to meet its delivery timelines.
