LG Chem signs battery pact with Vietnam’s carmaker VinFast

South Korea��s to secondary battery maker LG Chem Ltd. signed a memorandum of understanding with Vietnam��s first finished car maker VinFast to cooperate in future mobility and other areas in the third important market for Korean exports.

According to industry sources and Vietnamese media reports on Monday, the two companies signed the agreement on Monday in Hanoi to jointly develop eco-friendly products and establish a joint venture in Vietnam. LG Chem will supply electric vehicle batteries to the automaker.

VinFast that acquired GM��s Hanoi factory in February has been establishing a manufacturing line in Supplier Park in Hai Phong with an aim to begin operation in the second quarter next year.

LG Chem has also agreed to provide smartphone batteries to the automaker��s electronics making affiliate VinSmart under Vingroup, Vietnam��s largest conglomerate with market capitalization reaching 16 trillion won ($14.2 billion), according to sources.

��The agreement is a strategic partnership to expand our presence in the Southeast Asian market,�� said LG Chem. ��We will continue to negotiate details of the terms including battery supply.�� Vietnam has emerged as Korea��s third largest export market after China and the United States.

The nation��s leading chemical company established LG Vina Chemical in 1995 in Ho Chi Minh. It produces 40,000 tons of dioctyl phthalate per annum at the plant and supplies the products to Southeast Asia.

Shares of LG Chem closed Monday at 347,000 won, down 1.42 percent from the previous session.

By Kang Doo-soon and Choi Mira

[�� Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]