BYD recently signed an agreement with Vietnamese manufacturer Kim Long Motor to construct a production facility for electric vehicle (EV) batteries.
THE NEW BATTERY PLANT
BYD and local manufacturer Kim Long Motor broke ground on an upcoming battery plant last 27 January 2026. The plant will be built in Kim Long Motor’s automotive and industrial park in Hue City, Vietnam.
Kim Long Motor disclosed that the site allotted for the plant covers 4.4 hectares. Further details revealed that the EV plant will have an annual production capacity of 3 gigawatt-hours per year. Its batteries will be used for commercial electric buses such as buses, trucks, and minibuses.
The total investment is valued at USD 130 million (AUD 185 million) with Kim Long Motor fully funding the project. In turn, BYD will provide full technological support to the project.
The agreement is strategically significant for both companies as Kim Long Motor will be able to advance its EV battery technology and manufacturing capabilities. On the other hand, a battery plant in Vietnam allows BYD to expand operations in another Southeast Asian country.
The recent rise of EVs in Vietnam makes the country a viable location for BYD to widen its reach within Southeast Asia. It should be noted, however, that the surge in EV adoption in the country can be attributed to its local manufacturer, VinFast.
CONSTRUCTION
Construction of the new plant will be divided in two phases: the first phase will be completed on the 4.4-hectare site. Once the first phase is completed, the plant will be one of the largest EV battery facilities in Asia. The second phase will expand the plant to 10 hectares and increase annual production capacity to 6 GWh.
Kim Long Motor aims to achieve 80 per cent localisation in this hub by Q2 of 2026. The company’s CEO noted at the ground-breaking ceremony that long-term EV development is strongly linked to Vietnam’s industry autonomy. He explained that the plant is not simply for increasing the company’s production but allows Kim Long Motor to pursue their commitment to “mastering technology.”
For the city of Hue, the new plant is a sign of progress towards a greener future and completion of a goal to attract foreign investors. Hue’s People Committee Chairman Phan Quy Phuong said that the committee will fully support the project to ensure its completion and operational efficiency.
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