The Vingroup VinFast VF e35 electric vehicle is unveiled during AutoMobility LA ahead of the Los Angeles Auto Show on November 17, 2021 in Los Angeles, California. Photo:AFP

Vietnam's VinFast plans to build electric vehicle (EV) battery cells and packs in a new US manufacturing complex, its global chief executive told Reuters, as the company moves to transform itself into an all-electric automaker by the end of this year.

VinFast, part of Vingroup JSC, the largest conglomerate in the Communist-ruled country, became the country's first full-fledged domestic carmaker when gasoline-powered models built under its own badge hit the streets in 2019.

The company, which began selling EVs in Vietnam at the end of 2021, said in a statement on Thursday it planned to become what it said would be the first car company to cease making gasoline-powered cars and transition to all-EV production from late 2022.

VinFast is betting big on the US market, where it hopes its electric sport utility vehicle (SUV) offerings and a battery leasing model will be enough to tempt consumers away from the likes of Tesla and General Motors.

"We will build our gigafactory in the US as well," Le Thi Thu Thuy, Vingroup vice chair and VinFast Global CEO said, referring to the new battery facility in an interview during her US visit to attend the Consumer Electronics Show in Las Vegas.

The company will continue to source batteries from its suppliers, she added.

Thuy said VinFast will initially assemble battery packs with cells sourced from its supplier at its US complex before starting its own production there.

"We have narrowed down from I think, over 50 sites to about three sites," she said.

She will visit some sites during her trip before making a decision this year, adding that the "mega site" would also include an electric bus factory.

In December, Vingroup said it had started building a battery cell plant in Vietnam. The company is looking to initially produce 100,000 battery packs per year, with $174 million in investment, and then upgrade capacity to 1 million.

VinFast previously told Reuters it had plans to start producing electric cars in the US in late 2024. 

The company said prices for its VF8 SUV started from $41,000 in the US, and that it would apply blockchain technology to record orders and confirm ownership. By comparison, a Tesla SUV sells for around $50,000.

Vingroup said it was targeting global EV sales of 42,000 next year.

Reuters